A company is claiming Chicago City Hall is blocking its effort to show the city was politically coerced to deny the company's application to operate a metal recycling center on the city's Southeast Side.
"The facts will show that Chicago Department of Public Health did not base its decision to deny the Large Recycling Facilities permit application on lawful grounds, but instead on bias, bad faith, and improper political pressure," Reserve Management Group (RMG) alleged in a recent legal filing.
RMG has sought since 2018 to open an $80 million recycling facility on a 175-acre site in the South Deering neighborhood. RMG, which was formerly known as General Iron, operated a recycling plant for decades on the city's North Side until the city pressed the company to close the plant, citing pollution concerns, court papers said. The closing of that facility prompted RMG's plan to build, what it has called a "state-of-the-art" facility in South Deering.
On Feb. 18, the city's health department announced it was turning down RMG's application, because of "potential adverse changes in air quality and quality of life that would be caused by operations, and health vulnerabilities in the surrounding communities – together with the company’s track record in operating similar facilities."
RMG is appealing its application denial in Chicago city administrative court. RMG recently asked Administrative Law Judge Mitchell Ex to allow the company to engage in discovery to uncover evidence it claims will show city officials and the U.S. Environmental Protection Agency (EPA) caved in to activists who oppose the proposed facility. The activists alleged the facility would have a negative impact on nearby, predominantly black neighborhoods.
RMG said it's "indisputable" that the proposed facility "satisfied every measurable requirement" and "for months" the city told the company it met all requirements and a draft permit was in the works. The city then turned around and made an "abrupt" and "purely subjective" decision, "not based on science or any objective measurable standards" to withhold a permit, RMG claimed.
The company said it wants to dig into the alleged role of Mayor Lori Lightfoot and other city officials, as well as that of the EPA, in the decision to reject the recycling plant. To this end, RMG seeks copies of all communications between the city health department, other city officials and the EPA in connection with the application, according to court documents.
"There is more than enough evidence in the record already to suggest that the bases within Chicago Department of Public Health's denial letter were a mere pretext and that discovery is therefore warranted," RMG asserted.
RMG added that the city conducted a "health impact analysis" of the planned recycling center, but the criteria used in the analysis was never made known to RMG until the application was denied.
According to RMG, the city also pointed to "supposed" prior problems at RMG entities to which RMG was never given a chance to respond.
In addition, the city is letting another metal recycler operate without emission controls, RMG claimed. This competing recycler, which RMG did not name, has a "long and troubled history of serious violations," RMG alleged.
The city is trying to block RMG's access to the information the company seeks, on grounds bias and political pressure were not a "stated basis" for the denial.
RMG countered the city is allegedly being "obstructionist" and engaging in "flagrant gamesmanship."
RMG filed suit in May 2021 against the city, wanting $100 million for allegedly protracting the application process and not following regulations. However, the suit has been dormant while administrative hearings play out. RMG has threatened to resume the suit if the denial remains in place.
RMG has been represented by Jeffrey A. Rossman, Terrence J. Sheahan and Matthew T. Connelly, of Freeborn & Peters, of Chicago.
The city is represented by attorneys from its Department of Law.