Harrah's to Pay Contractor Bills

METROPOLIS, Illinois – As reported by the Paducah Sun: "Owners of Morsey Inc. say gaming giant Harrah's Entertainment has promised to pay them more than $1.35 million overdue for work on a dormant $62 million Harrah's hotel and events center project on the Metropolis riverfront.

"Representatives of both firms were expected to meet today in Memphis, Tenn., said Morsey marketing director Brian Sayner.

"…Sayner said Morsey officials expected to be paid today or get a 'very strong commitment' as to when they will be paid. Harrah's Metropolis Casino Vice President Mike Crider referred questions to Robyn Ryan, public relations manager, who would not elaborate.

"…Morsey, a Calvert City, Ky.-based general/mechanical contractor, filed a lien Wednesday against the $62 million hotel project, which Harrah's halted in January, blaming lack of approval from the Illinois Gaming Board. Because of three vacancies unfilled by Gov. Rod Blagojevich, the board has lacked a quorum for more than six months. The governor said he has had trouble finding qualified, committed candidates.

"Sayner said Morsey had finished more than 70 percent of the site preparation and underground utilities work for the complex when Harrah's instructed general contractor Smoot Construction of Indianapolis to terminate Morsey for convenience, not for any dispute or quality issues. Harrah's later settled with Smoot for its fee, but continues to refuse payment to the six subcontractors who completed the work, Sayner said. Harrah's has withheld payment from Morsey for more than four months, he said…"