Texas Attorney General Launches Investigation into East Plano Islamic Center's "EPIC City" Development
Texas Attorney General Ken Paxton has opened an investigation
Texas Attorney General Ken Paxton has opened an investigation into a 402-acre development project, "EPIC City," proposed by the East Plano Islamic Center (EPIC) in Josephine, Texas, approximately 40 miles northeast of Dallas. On Tuesday, March 25, 2025, Paxton issued a Civil Investigative Demand (CID) to Community Capital Partners (CCP), the corporate entity established by EPIC to manage the development, citing potential violations of Texas consumer protection laws. The investigation follows Governor Greg Abbott's announcement that "a dozen state agencies" are examining the project amid claims of "serious legal issues," though specific violations have not been identified.
State Officials Raise Concerns Over Proposed Muslim Community
The investigation marks an escalation in the scrutiny of a project that has faced significant public backlash since February, when a promotional video about the development spread across social media. Governor Abbott has been particularly vocal in his opposition, suggesting without evidence that the development could promote "Sharia cities" or create "no-go zones" where non-Muslims would not be welcome.
"Under my watch, there will be zero tolerance for any person or entity that breaks Texas law," Paxton stated in a press release issued by his office. "My office has an open and ongoing investigation into EPIC City, which has raised several concerns, and this CID will help ensure that any potential violation of state law is uncovered."
The Civil Investigative Demand seeks to gather information relevant to the investigation, though the Attorney General's office has not specified which consumer protection laws may have been violated. According to the Texas Attorney General's website, the CID was issued as part of an ongoing investigation into the real estate development tied to the East Plano Islamic Center.
Project Details and Community Response
EPIC City is planned as a comprehensive development featuring more than 1,000 single and multi-family homes, a new mosque, a K-12 faith-based school, senior housing, an outreach center, commercial developments, sports facilities, and a community college. The project would be built in unincorporated areas of Josephine, a rapidly growing city between Collin and Hunt counties.
Imran Chaudhary, President of Community Capital Partners, responded to the investigation in a statement to KERA News, expressing willingness to cooperate with authorities.
"We understand that there has been a lot of rumor-milling and misinformation circulated by many uninformed," Chaudhary said. "We look forward to working with the Attorney General to ensure that we are in legal compliance every step of the way and educating the broader community about our project."
The East Plano Islamic Center has consistently maintained that the development will comply with all applicable laws. In response to Abbott's earlier criticism on social media platform X (formerly Twitter), the center stated: "It should go without saying that our community, like any other in this great state, will follow all local, state, and federal laws. We would love you to see the site and learn about our project over some Hutchins BBQ."
Growing Controversy and Political Context
The controversy surrounding EPIC City has intensified recently, with several state officials weighing in. State Representative Jeff Leach, R-Plano, sent a letter to Paxton requesting an investigation, expressing concern that the project might include "elements of Sharia Law" and potentially violate House Bill 45, a 2017 law prohibiting foreign law in Texas courts.
Governor Abbott has been particularly outspoken about the development. On March 25, he posted on X: "The proposed EPIC compound in Collin Co. has serious legal issues. A dozen state agencies are investigating it, the Attorney General will look into it, and legislators are considering laws to restrict it and prevent foreign adversaries from buying land in Texas."
This follows his February 24 post, in which he stated, "To be clear, Sharia law is not allowed in Texas. Nor are Sharia cities. Nor are 'no go zones', which this project seems to imply. Bottom line. The project, as proposed in the video, is not allowed in Texas."
The governor's reference to "foreign adversaries" raised additional questions, though his office did not elaborate on this claim when contacted by KERA News.
Developer's Vision and Community Growth
Yasir Qadhi, a resident scholar at the Plano Mosque and one of the people planning the project, has emphasized that EPIC City is not intended to be an exclusive community. In an interview last year, he explained that the development arose from the growing Muslim population in the region and increasing demand for space.
"We need more space, and people are coming from across the country," Qadhi told KERA News. "Dallas is now known to be a hub of people of our faith, coming not just to the city, but specifically to our mosque."
Qadhi stressed the planned community's inclusive nature: "It's an open community. Anybody can come in. We're welcoming people of all backgrounds and diversity, and we're offering them facilities that we think would be very, very useful."
The development is situated in an area experiencing significant growth. According to KERA News, Josephine's population grew by nearly 5,000 in 2023 – a 234% increase over three years. The demand for the EPIC City development appears strong, with Qadhi noting that the first 450 plots sold out within days of being announced on the mosque's website.
Financial Structure and Legal Questions
The investigation has focused on the development's financial structure. According to Legal News Line, promotional materials from EPIC have indicated that Community Capital Partners was "created by EPIC" and that EPIC is the "only beneficiary of profits" from the development.
Qadhi has previously stated that no external funding exists for the planned construction. Instead, people purchase shares to own plots of land for future homes, with an additional charge to help fund the construction of community buildings like the mosque and school.
Community Capital Partners has publicly committed to complying with the Fair Housing Act, which prohibits discrimination in housing based on religion and other protected characteristics. Newsweek stated they "will not impose blanket restrictions on any demographic, but will perform comprehensive individual evaluations of potential buyers to ensure they meet our safety and security objectives."
Cultural Integration and American Values
The controversy highlights ongoing tensions regarding religious freedom, community integration, and cultural diversity in Texas. Qadhi has framed the project as an expression of American values rather than an attempt to create a separate enclave.
"We are not forming a cult. We're not forming big barriers between the rest of society," Qadhi said by KSST Radio. "We're going to be giving back to this state and this country, and we're going to be showing what it means to be a Muslim neighborhood."
In his earlier interview with KERA News, Qadhi emphasized that the project embodies American ideals: "We are a very family-centered and community-centered faith. We strongly feel that by coming together and living our faith in this great land, we exemplify the American dream. And we are going to contribute back not only to ourselves and our families but to the greater public around us. And that's what it means to be a part of this society."
Broader National Context
The investigation into EPIC City comes amid heightened national attention to Muslim communities in the United States. According to Newsweek, during his presidency, Donald Trump prohibited entry to individuals from several predominantly Muslim nations after calling for "a total and complete shutdown of Muslims entering the U.S." Earlier this month, The New York Times reported on what it described as a draft memo from the Trump administration suggesting a new entry ban affecting citizens from 11 countries, seven of which are majority Muslim.
The Dallas Express reports that the controversy has "rekindled broader debates over religious freedom and the integration of diverse communities in Texas." The situation underscores ongoing discussions regarding the balance between cultural development and state regulations.
Legal and Community Implications
As the investigation proceeds, EPIC City's future remains uncertain. The outcome could have significant implications for this specific development and potentially for other faith-based community projects in Texas and beyond.
The case raises important questions about religious freedom, property rights, and the limits of state authority in regulating community development. It also highlights the challenges faced by minority religious communities seeking to establish spaces that reflect their cultural and spiritual values while integrating into the broader social fabric.
With multiple state agencies involved in the investigation and legislators reportedly considering new laws related to such developments, the EPIC City controversy is likely to remain at the center of Texas politics and policy discussions in the coming months. How the state balances its concerns about foreign influence and legal compliance with constitutional protections for religious freedom and property rights will be closely watched by communities across the nation.
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