Owner of General Iron suing Chicago for $100M over permit delay

CHICAGO - The owner of General Iron filed a lawsuit on Monday against the city of Chicago for more than $100 million in damages.

The company, now known as Southside Recycling, wants to open a metal shredding facility at 116th and the Calumet River.

Mayor Lori Lightfoot’s office is holding up the permit until an environmental assessment is complete.

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The lawsuit, filed by Southside Recycling and its parent company, Reserve Management Group, says the delay is causing, "significant and potentially permanent damage" to their business.

"When we announced this project nearly three years ago, we accepted many business risks, but we knew that we would make the necessary investment to design and build a facility that complies with all city, state, and federal standards to protect public health and the environment, and we’ve done that," said Steve Joseph, CEO of RMG. "But one risk that we did not take was that the city would cast aside its rules and agreement and suspend the permit review, without any legal justification, after we met every requirement. We regret filing this lawsuit, but we are left with no choice to protect our business, employees, suppliers, and customers."

City officials say they have no further comment.