RI agency official out after Schilling default

Providence, R.I. (AP) — The head of the Rhode Island agency whose board approved a $75 million loan guarantee for former Red Sox pitcher Curt Schilling's now-troubled video game company has resigned, and state officials are continuing to weigh whether to try to help save the firm.

Keith Stokes offered his resignation Wednesday as executive director of the Economic Development Corp., Gov. Lincoln Chafee said.

The governor said he accepted it, and thanked Stokes for his service.

"Keith is committed to seeing Rhode Island succeed and I am confident that he will continue to be very involved in the state he loves," Chafee said.

Schilling's 38 Studios on Wednesday asked the economic agency for additional assistance after defaulting on a scheduled $1.1 million payment to the agency on May 1. Chafee would not describe the details of the company's request after an emergency meeting of the agency's board, but said the state is trying to determine whether it should give the company any more help.

The board did not vote on the request and is scheduled to meet again on Monday.

Stokes told The Associated Press on Thursday that he had been considering stepping aside for a while. He said he met with his staff Thursday morning to inform them of his decision.

As to whether 38 Studios played a role in his decision, Stokes quoted novelist William Faulkner, saying "all of us fail to match our dreams of perfection."

An Economic Development Corp. spokeswoman did not immediately return messages seeking comment about Stokes' resignation.

38 Studios relocated from Massachusetts in 2010 after Rhode Island offered a $75 million loan guarantee that state officials said would means 450 jobs and millions in tax revenue.

Stokes said the legislation that allowed the Economic Development Corp. to back up to $125 million in loans was not intended for a single company and that other firms have benefited from the program. Since Chafee took office, the board has adopted a new policy that caps the amount that any company can receive in loan guarantees at $10 million.

Stokes directed further questions about the 38 Studios deal to an Economic Development Corp. spokeswoman.

After the loan guarantee was approved in 2010, Stokes called it a calculated risk "well worth taking." He said the board performed months of due diligence in analyzing the video game sector and 38 Studios and crafted an agreement that went "to great lengths to safeguard taxpayers and ensure economic performance."

Stokes was appointed head of the Economic Development Corp. by Republican Gov. Donald Carcieri in 2010 after serving 15 years as executive director of the Newport County Chamber of Commerce. Stokes also served on the Economic Development Corp. board for 16 years, and he said he was involved in every major development project over that time.

Chafee kept Stokes on when he took office last year despite misgivings about the loan guarantee for 38 Studios. Chafee, an independent, was a vocal critic of the guarantee, saying on the campaign trail he thought it was "one of the biggest risks I've ever seen."