Contractors have filed five separate lawsuits seeking roughly $5.5 million in unpaid fees from SMC Management, the Watertown‑based developer behind three Worcester apartment projects. The suits focus on the unfinished 185‑unit Table Talk Square complex adjacent to the Polar Park district, as well as the Residences on Madison and the Poet Hill development.

Table Talk Square liens

Three of the lawsuits target the Table Talk Square site, where no construction activity has been observed in the past two weeks, most recently on Monday, Oct. 26, according to the Worcester Business Journal. The plaintiffs are seeking to enforce mechanics liens – a legal tool that allows unpaid contractors to place a claim against the property they improved and request a court‑ordered sale to satisfy the debt.

Contractors claim they are owed about $1.35 million for work performed at Table Talk Square. In a September filing, Middlesex Glass alleged that Maryland‑based builder Bozzuto halted work at the site over payment problems with SMC, after which SMC terminated Bozzuto’s contract.

Bozzuto’s $3.1 million claim

Bozzuto filed the largest claim in August, asserting that SMC owes roughly $3.1 million for constructing the 102‑unit Residences on Madison at 5 Madison St. The complaint names SMC founder Stephen Chapman and related entities, accusing them of diverting more than $3 million in construction‑loan funds intended for Bozzuto and its subcontractors to investors or other uses.

Bozzuto also alleged that SMC’s three Worcester projects carried over $10 million in unpaid obligations when the suit was filed, including at least $5 million tied to Table Talk Square.

SMC denied the misconduct allegations in a September court filing, describing the dispute as a non‑payment issue that should be resolved through mediation and arbitration. The developer argued that the Madison property provides sufficient security to cover Bozzuto’s lien.

Poet Hill lawsuit

Callahan Inc., a Bridgewater‑based construction manager, sued the owner of the Poet Hill project on Oct. 22, seeking about $1.06 million for work on the 210‑unit Poet Hill Residences on Hemans Street. Callahan initially claimed roughly $2.15 million but acknowledged receiving nearly $1.1 million in additional payments in October. The company completed the building in June and now seeks payment, interest, and enforcement of a lien against the Poet Hill property.

City financing context

Table Talk Square sits within the Polar Park district improvement financing area, where property taxes and other revenues from new development are earmarked to help the city repay debt on the publicly financed ballpark. The financing district is already behind its revenue projections. In an October 2025 memo to the City Council, Chief Financial Officer Timothy McGourthy reported the fund collected $929,000 less than expected for fiscal 2025, leaving a $1.7 million shortfall to the city’s general fund. He attributed the gap to delayed private development, high construction costs, and rising interest rates.

City Auditor Robert Stearns projected an additional $390,000 shortfall for fiscal 2026. The city covers each year’s gap from its general fund, expecting the financing district to repay the deficit later.

Planning approvals and future plans

In a March update, City Manager Eric Batista listed SMC’s Table Talk project among the redevelopment plans that have Planning Board approval, part of a total of 349 approved units from SMC and Rossi Development on the former pie‑factory site.

SMC announced plans for a five‑story, wood‑frame apartment building on a two‑level podium with 233 parking spaces after purchasing the parcel at Ash and Washington streets for $5.25 million in June 2025. The site had previously been slated for a 375‑unit project that stalled when a partner withdrew.

Legal status

All five cases remained open in court records as of Monday. Kevin McRoy, a Fall River attorney representing SMC, told the Worcester Business Journal that the parties have resolved the litigation involving the Residences on Madison and are working in good faith to settle the remaining disputes. He did not specify when construction at Table Talk Square might resume.

The ongoing lawsuits highlight the financial pressures facing both developers and the city as Worcester seeks to expand housing while managing the obligations of its public‑financing districts.

Original reporting: This Week in Worcester — read the source article.