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Chicago Recycling Company's $80M Facility Still in Limbo After Court Ruling despite City Judge's Backing

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Published on October 07, 2023
Chicago Recycling Company's $80M Facility Still in Limbo After Court Ruling despite City Judge's BackingSource: Administrative Office of the United States Courts, District of Illinois

In the ongoing battle for Southside Recycling's right to operate at 11600 S. Burley Ave in East Side, another obstacle has surfaced. As Block Club Chicago reports, a county court ruled that even with a city judge's overturning of the company's permit denial, the company's pursuit of the operating permit it seeks isn't guaranteed. The facility, set to inherit the troubled Lincoln Park scrapper General Iron's assets and employees, has been facing opposition from Southeast Side residents spearheading a 'Deny the Permit' campaign for several years.

Southside Recycling was originally denied an operating permit in February 2022 by then public health Commissioner Dr. Allison Arwady. However, the company and its parent, Reserve Management Group, invested $80 million in building the East Side facility, having received support from former Mayors Rahm Emanuel and Lori Lightfoot. The facility's prospects shifted in June when administrative law judge Mitchell Ex, ruling that Southside Recycling had fulfilled the requirements for a permit, overturned the original denial. Notwithstanding, Mayor Brandon Johnson's administration, on June 30, contested Ex's ruling, highlighted the Southeast Side community's vulnerability to air pollution and their existing pollution load.

Despite the company's legal woes, Cook County Circuit Court Judge Allen Walker did not view Ex's ruling as obligating the issuance of the permit. While this could be perceived as merely a temporary hurdle, both the company and city officials need to confront its possible consequences. As Chicago Sun-Times reported, Southside Recycling is involved in a separate $100 million lawsuit against the city, accusing it of breaching a 2019 agreement to aid the company's move to the Southeast Side. The company spokesperson Randall Samborn claimed in June that "damages continue to accrue every day," with the facility remaining closed.

This situation underscores the intricate relationship between political decisions, corporate ambitions, and community concerns. The city's agreements with the federal government, made to pursue environmental justice reforms spurred by a civil rights complaint regarding the city's support to Southside Recycling, may face nullification if the city voluntarily gives the green light for the scrapper to open, hence jeopardizing future federal funding for programs like fair housing and accessibility services.

The case's next hearing is set for November 14, but it's glaringly obvious that the resolution will transcend an operating permit.