Officials at Bally’s Chicago insist that the mechanics’ liens filed against the $1.7 billion casino resort are unjustified. They argue that the project has consistently paid its invoices on time and attribute the issue to the general contractor.
The Chicago Tribune reports that MGM Excavating recently filed liens in Cook County against Bally’s Chicago and the Chicago Community Builders Collective (CCBC). CCBC, a minority-led construction partnership, is responsible for overseeing the development of the expansive resort.
MGM Excavating and its subcontractors claim they are owed $3.8 million for work completed at the project site in Chicago’s River West neighborhood. MGM Excavating is a Chicago-based excavation company specializing in foundation work.
Two subcontractors of MGM Excavating, B.B.D. Trucking and E. King Construction Co., assert that they are owed approximately $2.7 million for their services.
“We hauled away dirt, we brought in stone. The work was completed, the bills were submitted, and they owe us for the work,” said Sharonda Williams, vice president of B.B.D. Trucking, in an interview with the Chicago Tribune.
MGM Excavating claims their portion of the $3.8 million amounts to around $1.1 million.
Bally’s Disputes Liens
Construction at Bally’s Chicago was recently slowed down after the Chicago City Council approved the use of slot-like video gaming terminals (VGTs).
Bally’s argues that allowing these gaming machines in various establishments violates their Host Community Agreement (HCA). The HCA states that any new form of gambling authorized by the City Council breaches the agreement and necessitates renegotiation in good faith.
Bally’s asserts that the lien filed by MGM Excavating is unrelated to the halt in non-casino construction and maintains that all construction bills have been paid promptly.
Bally’s has fulfilled its payment obligations to CCBC, which serves as the stewards of those funds. Any outstanding payment dispute is between CCBC and the subcontractor and does not involve an unpaid obligation by Bally’s,” stated the company.
CCBC has confirmed that they are in possession of the funds but are holding them back pending an investigation regarding the approval of MGM Excavating’s subcontractors by the Illinois Gaming Board for work on the site.
Landlord Involvement
The liens filed by MGM Excavating also implicate Gaming & Leisure Properties, Inc. (GLPI), the landlord of the $1.7 billion development. GLPI is the primary lender for the Chicago casino.
Presently, Bally’s Chicago is only proceeding with the casino section of the project, which is set to feature 3,400 slot machines, 170 table games, and a sportsbook.
Other components such as the 500-room hotel, 3,000-seat theater, and 2,000-foot-long Riverwalk extension have been paused after months of work.