Bally’s Chicago Denies Claim It Owes Millions to Contractors

Officials with Bally’s Chicago say mechanics’ liens filed against the $1.7 billion casino resort are without merit, claiming the development has paid its invoices on time and that the issue lies with the project’s general contractor.

The Chicago Tribune reports that MGM Excavating filed the liens last month in Cook County against Bally’s Chicago and the Chicago Community Builders Collective (CCBC). The CCBC is the minority-led construction partnership formed to serve as the general contractor of the sprawling resort development.

MGM Excavating and its subcontractors claim they’re owed $3.8 million in work performed at the project site in Chicago’s River West neighborhood. MGM Excavating is a Chicago-based full-service excavating company specializing in foundation excavating.

MGM Excavating says two of its subcontractors — B.B.D. Trucking and E. King Construction Co. — are owed approximately $2.7 million.

“We hauled away dirt, we brought in stone. The work was completed, the bills were submitted, and they owe us for the work,” Sharonda Williams, vice president of B.B.D. Trucking, told the Chicago Tribune.

MGM Excavating contends its share of the $3.8 million is roughly $1.1 million.

Bally’s Rejects Lien

Bally’s Chicago abruptly slowed construction on the resort earlier this month in response to the Chicago City Council moving forward in authorizing slot-like video gaming terminals (VGTs).

Bally’s contends allowing the gaming machines in restaurants, bars, truck stops, and social organizations violates its Host Community Agreement (HCA). The HCA stipulates that any new form of gambling authorized by the City Council violates the partnership and makes it “subject to good-faith renegotiation.”

Bally’s says the lien filed by MGM Excavating has nothing to do with the non-casino work stoppage, and that it’s paid its construction bills on time.

The CCBC has since acknowledged that it’s in possession of the funds, but is withholding the money pending an ongoing investigation into whether MGM Excavating’s subcontractors had been approved by the Illinois Gaming Board to work on the construction site.

Landlord Also Named

The MGM Excavating liens also name Gaming & Leisure Properties, Inc. (GLPI), which is the landlord of the $1.7 billion development. The real estate investment trust is the primary lender of the Chicago casino.

For now, Bally’s Chicago is only moving forward with the casino component of the project. The planned casino is to include 3,400 slot machines, 170 table games, and a sportsbook.

The 500-room hotel, 3,000-seat theater, and 2,000-foot-long Riverwalk extension are among the many other parts that have been put on hold after months of work.