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Subcontractor Wants Illinois Board to Intervene in Dispute

METROPOLIS, Illinois – As reported by the Paducah Sun: "Officials of Calvert City, Ky.-based Morsey Inc. want the Illinois Gaming Board to intervene in a squabble over not being paid at least $1.35 million for work on a halted hotel project at Harrah's Metropolis Casino.

"Mike Donohoo, Morsey president and chief executive officer, sent a letter Friday asking the gaming board to review the problem and take 'all appropriate action' against gaming giant Harrah's. The letter said Harrah's told general contractor Smoot Construction of Indianapolis, Ind., to fire Morsey on Dec. 17 for 'convenience' despite Morsey's having finished more than 70 percent of the site preparation and utility work for the $62 million, 120-job hotel/entertainment complex.

"Harrah's says Morsey originally misbilled Smoot for 100 percent of the work and Smoot later backed out of its contract, leaving big problems for a highly visible project intended to create scores of jobs.

"…Donohoo wrote that Harrah's and Smoot also failed to pay six other subcontractors who are mostly small, locally owned businesses.

"…Harrah's stopped work in late January on the seven-story, 258-room complex because of six-month vacancies on the gaming board that Harrah's said prevented the project from getting approved…"

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