Redevelopment firm to pay $12M for mishandling coal plant demo

Almost four years after the demolition of a former coal plant led to the Little Village neighborhood of Chicago being covered in dust, a federal court settlement of $12.25 million will be allocated to residents whose health and property were impacted.

As reported by the Chicago Tribune, the settlement was reached in early December 2023 in a U.S. District Court. Residents began filing complaints in the days following the implosion of the 380-foot chimney of the former Crawford Power Generating Station, which led to a class-action lawsuit against the Hilco Redevelopment Partners, the redevelopment company that oversaw the project.

Plaintiffs argued that Hilco “conducted their demolition in violation of the rules, regulations and customs governing the safe demolition and disposal of industrial sites,” reports the Chicago Tribune.

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Little Village residents also reported difficulty breathing after the particulate matter settled in the neighborhood.

While Hilco denies any liability and wrongdoing in this case, the agreement notice states the settlement is meant to conclude the lawsuit and avoid any additional burdens, expenses and uncertainties associated with a jury trial. 

Up to $1 million from the settlement will be used to reimburse those who owned or leased a property or business that was damaged by the dust and debris from the implosion, and approximately $7 million will be available to anyone present in the area near the coal plant the day of the demolition. According to the Chicago Tribune, each person who submits a valid personal injury claim might be entitled to between $250 and $500.

The remaining $4.25 million from the settlement will cover attorney fees and expenses as well as incentive awards for three of the original plaintiffs. A final approval hearing will be held in April.