Paxton Sues MUD Over Alleged Scheme to Support ‘EPIC City’ Development

The proposed Islamic development in Collin and Hunt counties has faced extensive scrutiny from state officials.

Attorney General Ken Paxton has filed a lawsuit against Double R Municipal Utility District No. 2A of Hunt and Collin Counties and individuals claiming to serve on its board, alleging unlawful actions intended to skirt state oversight and benefit a controversial North Texas development tied to the East Plano Islamic Center.

According to Paxton’s office, the lawsuit was filed after evidence surfaced that Double R MUD held a “highly unusual” special meeting on September 12, 2025—scheduled at noon at a remote location marked only by GPS coordinates. 

At that meeting, the existing board members allegedly resigned, were immediately replaced by new individuals, and the newly formed board then approved an expansion of the district’s boundaries.

The board’s rapid approval reportedly annexed more than 400 acres described as “The Meadow,” previously known as “EPIC City,” into the Double R MUD. 

The attorney general contends that this maneuver was designed to help EPIC City developers evade state review by expanding an existing district rather than going through the legal process of forming a new one.

Paxton’s office further alleges that some or all of the new board members do not meet the legal qualifications required to hold office within a municipal utility district. When state regulators sought documentation verifying their eligibility, Double R MUD delayed producing records, and those eventually provided reportedly confirmed the individuals were unqualified to exercise taxing authority or serve as directors.

“I will not allow individuals to cheat the system to advance an illegal development and destroy beautiful Texas land,” Paxton said in a statement announcing the suit. “If EPIC City’s developers or operatives are attempting to illegally take over local governmental structures in North Texas, my office will do everything in our power to stop their scheme.”

The lawsuit seeks to remove the defendants from the Double R MUD board, invalidate the September 2025 annexation, and hold the participants accountable for violating state law.

This case marks the latest move in Paxton’s broader legal push against EPIC City and associated development entities. In December 2025, the attorney general sued the East Plano Islamic Center and affiliated organizations to halt what he described as an “illegal land development scheme.”

In January, Collin County officials rejected a plan submitted by EPIC City developers due to missing documentation. 

On Friday, the U.S. Department of Housing and Urban Development launched an investigation into the planned Muslim housing development, alleging that its developers “may have violated the Fair Housing Act by engaging in religious and national origin discrimination.”

“As HUD Secretary, I will not stand for illegal religious or national origin discrimination,” stated Scott Turner, a former Texas state representative appointed by President Donald Trump in 2025 to head the federal housing agency.

A similar investigation last summer by the U.S. Department of Justice’s Civil Rights Division concluded after developers agreed to comply with the federal Fair Housing Act.