Despite a setback before a Cook County judge, the owners of an embattled new Southwest Side metal recycling facility say they are continuing with their efforts to force City Hall to allow them to open, in keeping with an order from an administrative law judge who determined the city improperly bowed to outside political pressure and violated its own ordinances in denying the facility a key environmental permit.
Chicago City Hall and the company, known legally as General III LLC, which does business as Southside Recycling, have been at odds in court for the more than a year, as the company seeks to compel the city to allow it to open the facility it said the city once supported, then opposed, allegedly due to pressure from activists and officials within the Biden administration.
For the past five years, Southside Recycling has sought to open a new metal recycling plant on 175 acres in Chicago’s South Deering neighborhood.
The company had operated a recycling plant for decades on the city’s North Side, until the city under former Mayor Lori Lightfoot pressed the company to close that plant over pollution concerns.
In court filings since, Southside Recycling said the city instead supported an alternative plan to build a new “state-of-the-art” facility on the South Deering site.
However, after the company invested $80 million in the project, the city abruptly reversed course in early 2022, rejecting the company’s request for a so-called Large Recycling Facility permit.
The city’s former public health commissioner, Allison Arwady, said that decision was based on the results of a so-called Health Impact Assessment, which relied heavily on principles of “environmental justice.” Arwady said the HIA allegedly showed “potential adverse changes in air quality and qualify of life that would be caused by operations, and health vulnerabilities in the surrounding communities.”
Southside Recycling responded to the permit denial with two legal actions.
The company filed an appeal of the decision with the city’s Department of Administrative Hearings, arguing the permit denial amounted to an illegal violation of the city’s own ordinances and rules, which don’t allow the Chicago Department of Public Health to use such “environmental justice” criteria when evaluating LRF permit requests.
The company also argued the decision was based on improper political considerations, to appease influential local anti-development activists and their allies in the federal government.
In Cook County court, the company also sued the city, demanding the city pay $100 million, if the facility ultimately never opens. That lawsuit remains on hold, pending the outcome of any appeals of the permit denial.
At the Administrative Hearing proceedings, Administrative Law Judge Mitchell Ex sided with Southside Recycling, finding the city had indeed improperly relied on the environmental analysis to deny the permit.
The city, now under Mayor Brandon Johnson, then chose to fight ALJ Ex’s order, appealing his decision to Cook County Circuit Court.
The case landed before Cook County Associate Judge Allen P. Walker.
Southside Recycling later filed its own cross-appeal, asking Judge Walker to take ALJ Ex’s order further, and order the city to issue a permit.
However, before either of those appeals could be decided, the company asked Judge Walker for a quicker win, in a motion for special order directing the city to immediately issue a permit. In that filing, Southside Recycling argued the city was essentially flouting ALJ Ex’s findings by continuing to deny the permit.
“To be sure, this is a case about whether the City of Chicago is above the law – whether the City and its departments can ignore the Municipal Code and duly enacted rules whenever it suits them or whether the City is bound by the rule of law – just like everyone else,” Southside Recyling wrote in its July petition.
On Oct. 6, however, Judge Walker denied that request.
Judge Walker issued the order without written comment.
Following that ruling, a spokesperson for the metal recycling company said the larger case remains pending, and the company intends to continue to contest the various appeals before Judge Walker.
A status hearing is scheduled in the case for Nov. 14.
Southside Recycling is represented by attorneys Jeffrey A. Rossman, Terrence J. Sheahan and Gia F. Colunga, of the firm of Smith, Gambrell & Russell, of the Freeborn & Peters Practice Group, of Chicago.
Southside Recycling’s lawsuit against the city, seeking $100 million, also remains on hold, pending the outcome of the appeals.