Casino

Electricians Anthony Marotti, left, of Lincoln and Tyrell Lightbourne, of Massachusetts, review blueprints at the former Lincoln Park last year.

THE PROVIDENCE JOURNAL / John Freidah

LINCOLN — The contractor that managed the $225-million reconstruction of the slot parlor in Lincoln has put a lien on the property in a move to secure $5.7 million from the facility’s owner, according to a municipal filing.

“Some of the money was overdue,” said Stephen Rutledge, chief executive officer of Dimeo Construction Co., of Providence.

His company filed the lien Wednesday in Lincoln Town Hall after disclosure that UTGR Inc., the company that owns the Twin River slot parlor, missed a loan payment to a lender. Due last week, the missed payment triggered a ratings downgrade on UTGR by the Standard & Poor’s Corp. ratings unit, The Providence Journal reported.

UTGR has entered into a pact with its lenders, known as a forbearance agreement, which allows the company to work out payment plans with its lenders and creditors such as Dimeo. That agreement extends until Friday.

A spokeswoman for Twin River, Patty Doyle, said the move by Dimeo “was not an unusual step at all.”

UTGR’s owners, BLB Investors, bought the facility, then known as Lincoln Park, for $435 million in 2005. The company quickly launched a $225-million renovation project.

The project added high-end restaurants, lounges and a 2,000-seat arena, spread out the parking area to fit 6,500 cars, rebuilt entrances and added space for more video-lottery terminals (VLTs) — bringing the number to 4,752 late last year.

“For all practical purposes, it’s a finished building,” Doyle said.

Dimeo was supposed to be paid $171.7 million for its work at the slot parlor. The lien covers the unpaid portion of that bill.

“[The payment] is not in dispute,” Doyle said. “We value their work. We value their relationship.”

A payment plan with Dimeo cannot be reached until after Twin River’s forbearance agreement with its lenders ends.

“We continue to have open communications with Twin River and BLB as they work through their cash-flow issues,” Rutledge said. “Everything will get worked out in a matter of time.”

Twin River is trying to work out a separate payment plan with its lenders, Doyle said.

“We’re diligently working with our lenders,” she said. “Nothing can happen in this 10-day forbearance period.”

If UTGR is unable to work out a plan with Dimeo, the construction company could sue the slot-parlor operators to get the money.

Dimeo’s action could also trigger other liens by subcontractors or vendors owed money by Twin River, but there were no such filings as of yesterday morning.

Also by late yesterday, no lawsuits had been filed in state court regarding Twin River’s finances, according to an e-mail from a court spokesman.

Doyle said, “The industry norm is: once the general contractor, or main contractor, files a lien, it’s not unusual for some subcontractors to do the same to hold their place in the line of credit.”

The outcome of Twin River’s negotiations over payments to its lenders and vendors may affect taxpayers because the slot parlor is a major source of tax revenue for Rhode Island.

Altogether, the state expects to take in about $243 million from Twin River’s VLTs for the fiscal year that ends June 30, and about $256 million for the year that will start July 1.

Twin River now employs 1,100 workers, while vendors employ an additional 553 at the Lincoln facility, according to the state Department of Business Regulation.

pgrimald@projo.com