Texas Halts EPIC City,Investigations Amid Controversy
Governor Abbott Freezes Proposed Islamic Community Development as State and Federal Probes Intensify
Texas Governor Greg Abbott announced Sunday that the state has halted all construction of EPIC City, a proposed Muslim-centered residential development near Dallas. The project, backed by the East Plano Islamic Center (EPIC), now faces "about a half dozen investigations" from state agencies and the U.S. Department of Justice, according to Abbott's May 11 statement on social media. The governor's action effectively freezes the controversial 402-acre development before it reaches the permitting stage, citing potential violations of state law.
"Texas has halted any construction of EPIC City. There is no construction taking place," Abbott wrote on X (formerly Twitter). "The state of Texas has launched about half a dozen investigations into this project. That includes criminal investigations. And, the US Department of Justice is also investigating."
What is EPIC City?
EPIC City is a master-planned development proposed for land in unincorporated Collin and Hunt counties, approximately 30 miles northeast of Dallas near the community of Josephine. The project, initiated by the East Plano Islamic Center, would be managed through its specially created entity, Community Capital Partners.
Plans for the mixed-use development include more than 1,000 homes and apartments, a mosque, a faith-based school for kindergarten through 12th grade, a community college, assisted living for older residents, sports facilities, and commercial developments.
The project was publicly launched in 2024, and more than 500 lots were reserved within days of the announcement. In February 2025, the development expanded to include two additional projects, EPIC Ranches One and Two, located within a mile of the main development.
"Our goal is to build an inclusive community for everyone," said Erin Ragsdale, a representative for Community Capital Partners, during a Collin County Commissioners meeting. "Anybody who wants to buy a piece of land in this proposed masterplan community can buy one. To build a house, to open a business, to build a school, to build a church, it is open to everyone."
The Controversy Erupts
The development first attracted government scrutiny in February when Texas State Representative Jeff Leach (R-Allen) wrote to Attorney General Ken Paxton expressing concern that "this large-scale real estate development may seek to incorporate elements of Sharia law into its operations."
By March, Governor Abbott had directed multiple state agencies to investigate the project. On March 31, he ordered the Texas Rangers to open a criminal investigation into the East Plano Islamic Center and affiliated entities for "potential criminal activities," without specifying what laws may have been violated.
"Texas is a law-and-order state, and those scheming to evade law enforcement scrutiny must know justice is awaiting them," said Governor Abbott in a press release. "That is why I directed the Texas Rangers to fully investigate the group behind the proposed EPIC compound for potentially violating criminal law. Texas will ensure that anyone affiliated with EPIC who is breaking the law is brought to justice."
Abbott has been particularly vocal about the development, posting about it at least 11 times recently. He has suggested the developers may have violated fair housing and financial laws and accused the Islamic center of conducting illegal funerals.
Federal Investigation Launches
On May 9, U.S. Senator John Cornyn (R-TX) announced that the Department of Justice had opened a federal civil rights investigation into EPIC City in response to concerns he expressed to U.S. Attorney General Pam Bondi and Assistant Attorney General for Civil Rights Harmeet Dhillon last month.
"I am grateful to Attorney General Bondi and the Department of Justice for hearing my concerns and opening an investigation into the proposed EPIC City development in North Texas," said Senator Cornyn in a statement. "Religious discrimination and Sharia Law have no place in the Lone Star State. Any violations of federal law must be swiftly prosecuted, and I know under the Trump administration, they will be."
Cornyn had requested the federal probe, citing concerns that the development could discriminate against Christians and Jews. The Justice Department has not publicly confirmed the investigation.
Multiple State Investigations
The project faces investigations from at least five state agencies:
The Texas Rangers are conducting a criminal investigation, ordered by Governor Abbott.
The Texas Workforce Commission is investigating potential discrimination violating the Texas Fair Housing Act.
The Texas State Securities Board is investigating potential financial harm to Texans.
The Texas Funeral Service Commission sent a cease-and-desist letter ordering EPIC to stop all "illegal funeral service operations immediately."
The Texas Attorney General is investigating potential violations of Texas consumer protection laws. In March, Paxton issued a Civil Investigative Demand to Community Capital Partners.
Developers Claim Religious Bullying
In early April, EPIC City developers hired high-profile attorney Dan Cogdell, who previously represented Attorney General Ken Paxton in his impeachment trial, to defend them against what they characterize as "racial profiling."
"This project is simply the victim of racial profiling," Cogdell stated. "Our goal is to lance the lies and shine some light on reality."
Cogdell has forcefully denied accusations that the development would implement Sharia law, calling Governor Abbott's claims "hate speech" and "an absolute lie."
"What's happened from Abbott's office is hate speech," Cogdell said. "He's tweeted that Sharia Law will be implemented. That's a lie. An absolute lie."
The attorney has also objected to Abbott comparing the development to a "compound," saying: "There are no underage children being molested. No cache of weapons. For him to call it a compound is an outright lie, an insult, and trying to demonize faithful, religious, hard-working people."
Community Concerns and Support
The project has generated mixed reactions from local residents. Many residents expressed opposition to the development at a Collin County Commissioners meeting on April 1.
Some speakers questioned whether the development could violate the Fair Housing Act if it only allowed Muslims to live there. Others voiced concerns about a predominantly Muslim community, with some specifically fearing the enforcement of Sharia law.
"We see the reactions of the people of the Muslim community and the reactions of people that are Plano residents and neighboring cities as well. We want to make sure that this is a fair representation on both ends between our clients at EPIC City and the residents of Collin County," said Anthony Osso, an attorney who works under the Cogdell Law Firm.
Muslim supporters of the project say the opposition is rooted in long-standing stereotypes and misunderstandings about their community.
"[They said] women are oppressed, that women have no voice, that sharia law will take over… it just doesn't work like that," said Fawzia Belal, a member of the East Plano Islamic Center, after listening to concerns at a commissioners meeting. "We are citizens of this land, and we are as American as anyone else out there."
The East Plano Islamic Center
The East Plano Islamic Center, the organization behind EPIC City, is a mosque in Plano, Texas. The current building opened in July 2015. EPIC is led by Imam Nadim Bashir and resident scholar Yasir Qadhi, among others.
Yasir Qadhi, the resident scholar at the Plano mosque, explained in a December interview that the idea for EPIC City came as the Muslim population continues to grow in the region.
"We need more space, and there are people coming from across the country," Qadhi said. "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 has described the community as a "Muslim neighborhood" that would remain "well integrated" within the broader community.
Civil Rights Concerns
The Council on American-Islamic Relations (CAIR) in the Dallas area has criticized the state investigations as bullying the Muslim community and violating constitutionally protected religious expression.
"Governor Abbott and Attorney General Ken Paxton have opted to misuse their authority by initiating unfounded 'investigations' against EPIC. Rather than acting as genuine public servants and leaders, they have chosen to exacerbate the situation by spreading hateful misinformation," said Mustafaa Carroll, the director of CAIR's Texas chapter, in a statement to Newsweek.
Dan Cogdell has argued that none of the investigations would be happening if the community were planned around a church or temple.
"These folks are US Citizens, law-abiding and Texans," Cogdell said Friday. "The attacks on the project about Islamic law and other claims are not only completely without merit and totally misleading, but they are dangerous as well."
Investment Structure and Financial Aspects
According to project representatives, the East Plano Islamic Center will receive all profits generated by the development. Community Capital Partners' leadership team consists of volunteers who reportedly will not receive compensation for their work on the project.
To reserve lots in the main EPIC City development, investors must purchase an $80,000 share in Community Capital Partners, which will later be credited toward a home lot purchase. Investors must provide $30,000 in earnest money for EPIC Ranches properties to secure a lot.
According to Yasir Qadhi, the first 450 plots sold out within days of the project's announcement on the mosque's website.
Real Estate Impact
While some property owners from neighboring areas have indicated plans to relocate due to the anticipated changes to the area's rural character, others have noted potential benefits from increased property values. According to local reports, several property values in the area have potentially doubled since the announcement of EPIC City.
Imran Chaudhary, previously the mosque's president of its board of directors, is now the executive officer and director of the Community Capital Partners business.
Legal and Regulatory Status
As of early May 2025, no formal construction had begun on the EPIC City project. Collin County Judge Chris Hill stated during a commissioners meeting in April that EPIC City planners hadn't presented any applications to the county yet.
The Texas Commission on Environmental Quality confirmed that EPIC City still needs the necessary permits and authorizations to start construction.
Political Reactions
The controversy has attracted significant attention from Texas political leaders. In addition to Governor Abbott's numerous posts about the development, state lawmakers have also weighed in.
Texas Attorney General Ken Paxton, who is conducting his own investigation, stated: "Under my watch, there will be zero tolerance for any person or entity that breaks Texas law. My office has an open and ongoing investigation into EPIC City, which has raised a number of concerns, and this CID will help ensure that any potential violation of state law is uncovered."
Meanwhile, Governor Abbott has strongly opposed the development, posting on social media in March: "The proposed community will never see the light of day."
The Path Forward
The future of EPIC City remains uncertain as multiple investigations proceed. No additional hearings have been scheduled, and construction has been officially halted as legal reviews are ongoing.
Governor Abbott has also supported legislative efforts to limit foreign land purchases and tighten restrictions on faith-affiliated developments. Despite the political pushback, EPIC and Community Capital Partners say they will continue planning and maintaining their vision for an inclusive neighborhood open to all residents, pending approval.
Attorney Dan Cogdell has pledged full cooperation with all investigations, despite considering them "misguided and unnecessary."
"EPIC will cooperate fully with any and all investigations - regardless of how misguided and unnecessary they are," Cogdell told reporters after the DOJ investigation was announced.
Summary
The controversy surrounding EPIC City highlights tensions between religious freedom and development regulations in Texas. As multiple state and federal investigations proceed, the future of the Muslim-centered community remains in limbo. While developers maintain the project will be inclusive and open to all, regardless of faith, state officials continue to express concerns about potential violations of housing laws and religious discrimination. This clash between the East Plano Islamic Center and Texas government officials underscores broader national debates about religious liberty, community development, and the rights of religious minorities to establish faith-centered communities.