RI state senator calls for overhaul of EDC

PROVIDENCE, R.I. (AP) — The co-chairman of a legislative economic development committee is calling for major organizational changes at the Rhode Island agency that approved a $75 million loan guarantee for Curt Schilling's failed video gaming company.

State Sen. James Sheehan says the quasi-public Economic Development Corp. needs more oversight and accountability and might be better off as an in-house state department.

His call comes after 38 Studios' bankruptcy filing last month. He notes another firm that got a $5 million loan guarantee in 2010 through a different program is also in default. The EDC is making payments on behalf of Capco Steel from reserve funds.

Sheehan says the EDC shouldn't be allowed to decide investments like 38 Studios alone.

A study of EDC's operations is under way for Gov. Lincoln Chafee.