General Iron Owner Seeks Millions from City Hall over Permit Denial
Background
The owner of the former scrap metal-shredding operation General Iron is moving forward with a previously filed lawsuit against the city that will seek hundreds of millions of dollars for lost business and other costs.
Lawsuit Filed in July 2021
The partnership that owns the metal scrapper filed its lawsuit in July 2021 after then-Mayor Lori Lightfoot delayed a planned decision on whether to grant the relocated, rebranded business a permit to operate on the Southeast Side.
Agreement and Permit Delay
The city’s delay in deciding whether to grant the permit violated terms of an agreement with the business, which built its new operation at East 116th Street and the Calumet River, the lawsuit claimed. The delay also cost the business money, the suit said.
Business Costs and Damages
The agreement with the city had provided a timeline for General Iron to shut down and move from Lincoln Park to make way for a massive real estate development. General Iron’s Lincoln Park site closed at the end of 2020, and the owner planned to open a rebranded business, Southside Recycling, in early 2021. "The city’s failure to issue the permit to Southside Recycling has caused significant and potentially permanent damage," the lawsuit said.
Damage Estimates
At the time, the business was seeking "damages well in excess of $100 million." A Cook County Circuit judge in the case noted the Lightfoot administration had not made its final decision, and so the case was put on hold. That hold status changed in December, and a hearing is set for next month on the matter. Owner Reserve Management Group has not publicly disclosed its updated estimate of damages it believes it’s now owed.
Community Protests and Permit Denial
Though Lightfoot appeared to initially support the scrap metal site on the Southeast Side, she ultimately denied the permit in February 2022 after community protests, including a hunger strike. That permit denial led to separate legal challenges. In August, the city’s decision to deny the permit was upheld in court.
Background on the Controversy
Southside Recycling was fully built and ready to begin operations under a timeline set by Lightfoot. Construction of that operation alone cost $80 million, according to the lawsuit. The lawsuit alleged Lightfoot gave in to political pressures after an outpouring of community and citywide protests over the planned car shredder move from white, wealthy Lincoln Park to a low-income community of color. The complaints led to a federal civil rights investigation that found the city discriminated against low-income communities by putting polluting businesses in the same areas, largely on the South Side and West Side.
City’s Response
A spokesman for Reserve Management declined to comment. Mayor Brandon Johnson has vowed to defend Lightfoot’s decision on the permit, though City Hall is not commenting on the recent court activity. "The city does not comment on ongoing litigation," said Kristen Cabanban, a spokeswoman for the city’s Law Department.
Upcoming Hearing
A hearing on the matter is set for March 10 before Judge Mary Colleen Roberts.
Conclusion
The controversy surrounding General Iron’s permit denial has led to a protracted and costly legal battle, with the business seeking hundreds of millions of dollars in damages. The outcome of the case remains uncertain, but one thing is clear: the community’s concerns about environmental justice and the impact of polluting industries on low-income neighborhoods will continue to be a focus of public debate.
Frequently Asked Questions
- What is the lawsuit about?
The lawsuit is about the city’s failure to issue a permit to General Iron, a scrap metal-shredding operation, despite an agreement to do so. - What are the damages being sought?
The damages being sought are in excess of $100 million, according to the lawsuit. - What is the background on the controversy?
The controversy surrounds the planned relocation of General Iron from Lincoln Park to the Southeast Side, which was met with community resistance and ultimately led to the denial of the permit. - What is the current status of the case?
The case is ongoing, with a hearing set for March 10 before Judge Mary Colleen Roberts.
