A controversial recycling facility will not be shut down, even though the City of Milford tried hard to prove to the state that it should be.A state official last week denied the city\u2019s request to dismiss Recycling Inc.\u2019s application to expand its facilty at 990 Naugatuck Avenue, saying dismissing the application would violate the company owner\u2019s rights. Janice B. Seshais, hearing officer for the Department of Energy and Environmental Protection (DEEP), denied the city\u2019s request to dismiss the proceeding, rescind a tentative determination, and reject the application, saying those measures \u201cwould result in an unacceptable violation of the applicant\u2019s due process rights based solely on the city\u2019s allegations.\u201dSeshais also denied the city\u2019s request to revoke Recycling Inc.\u2019s general permit, saying it would \u201cunjustly impair the rights of other registrants.\u201d\u201cIt is noteworthy that nowhere in its Motion to Dismiss does the City take any issue with the fundamental reasons for granting a stay in this matter,\u201d she wrote. \u201cRather, the City asks that I dismiss this proceeding without affording the applicant a hearing. Whether the City calls the relief it requests \u2018dismissing this proceeding,\u2019 \u2018rescinding the tentative determination issued by the Comnissioner,\u2019 or \u2018rejecting the applicant\u2019s application,\u2019 the result is the same. The City has provided no basis for its extraordinary request which would clearly violate the applicant\u2019s right to due process. In whatever form its requests for relief are framed, they are denied.\u201dSeshais said a hearing, which has not yet been scheduled, will determine the facts in the case, and give the applicant a chance to respond to the city\u2019s allegations.Recycling Inc.\u2019s application to expand has been put on hold because of an ongoing court battle over who owns the company. The application will remain on hold until the case is resolved.Separate court documents filed April 19 and 20 in Milford and Bridgeport superior courts show that Darlene Chapdelaine and Gus Curcio Sr. are battling over who owns the recycling facility. Chapdelaine argues that she owns the business, and she filed papers in Milford Superior Court to keep Curcio out. Curcio, in papers filed in Bridgeport Superior Court, maintains he owns the business and fired Chapdelaine April 12. Curcio filed a temporary injunction, in which he maintains that he owns the business at 990 Naugatuck Avenue and that Chapdelaine never did.The city has been fighting the recycling facility on Naugatuck Avenue for several years. The city initially denied an application by Chapdelaine to open the recycling operation, but DEEP approval trumped the city\u2019s denial at the time. The city has been fighting that ruling and others by the DEEP, arguing that the Milford location is not appropriate for a recycling facility.Chapdelaine has said she plans to expand the business, create jobs, and bring recyclables in by barge on the Housatonic River. She said she has been working to create a premier recycling facility in the state.Neighbors oppose the current facility, and the plan for expansion, saying it will bring in truck traffic to a residential area and possibly pollute the river.Following last week\u2019s DEEP decision, attorney David Slossberg, representing the city, criticized the state agency.\u201cDEEP kicked the can down the road instead of doing the right thing to protect the health and safety of the citizens of Milford,\u201d Slossberg said. \u201cIf DEEP desires, we can certainly have a hearing, at which we expect to show not only how the application is defective, but also DEEP\u2019s own negligence in handling it.\u201dSlossberg said he doesn\u2019t understand how the state can let Recycling Inc. continue to operate if ownership is not clear.The city is considering several follow-up strategies, but Slossberg said the Superior Court case may resolve the issue.Chapdelaine said she will continue to fight to expand her business, and vehemently denies that Curcio owns the land or the company.\u201cI do feel blessed that DEEP supports me and my application, but they support it due to the documents I have presented, in support of my ownership. I have given them everything,\u201d she said.