Last week, Texas Attorney General Ken Paxton secured a temporary restraining order halting a proposed Islamic center development in North Texas.
The East Plano Islamic Center, or EPIC City, is a planned for-profit development that would be a community-centered residential community designated for Muslims. The ‘City’ would be located in Josephine, Texas, about 40 minutes northeast of Dallas. Developers planned to build about 1,000 residential units, along with private schools, commercial and retail centers, and a mosque.
According to Paxton’s lawsuit, filed in February against Double R MUD No. 2A, the district’s board held an unusual meeting in September 2025 at a remote intersection. During the meeting, the existing board resigned, and new members took over.
The new board then allegedly approved a petition to add more than 400 acres to the district, expanding its boundaries to include the proposed development. Paxton argues the move was intended to allow EPIC City developers to avoid state oversight.
The TRO effectively prevents the district from taking action related to the development. A meeting scheduled for March 20 was blocked, prohibiting the board from appointing new directors or taking up new agenda items except under limited circumstances tied to ongoing litigation.
Municipal utility districts, or MUDs, are political subdivisions of the state that provide water, sewer, and infrastructure services, typically in areas outside city limits. They are funded through taxing homeowners within the district to repay bonds used for construction.
Due to MUDs being political subdivisions of the state, they are subject to state oversight and legal requirements.
“This Court enters this Temporary Restraining Order,” Collin County District Judge Andrea Thompson wrote. “Because the State’s application sets forth a reasonable basis for believing that notifying opposing counsel or parties would impair this Cour’s [sic] ability to grant relief due to the danger that the subject matter of this litigation could be compromised, removed, or destroyed.”
The order alleges that the defendants planned to assert unlawful authority over the district by entering financial agreements, including those tied to public securities, and by restructuring the board during a meeting scheduled outside of district boundaries.
Paxton applauded the order saying he will continue to fight to stop the illegal development.
“This TRO is a win for the rule of law. Allowing Double R MUD to meet in this way would have only furthered its illegal scheme to support EPIC City,” said Paxton. “My office will continue to work tirelessly to stop the illegal EPIC City scheme, and anyone who has broken the law will be held accountable.”
Paxton also filed a separate lawsuit in December 2025, accusing the EPIC City developers of violating the Texas Securities Act, including allegations of fraudulent practices while soliciting funds.
The order is set to expire on April 1, 2026, unless otherwise extended by the court or agreed to by the parties.