Paxton sues EPIC City developers, seeks to block 402-acre Collin County annexation

Texas Attorney General Ken Paxton filed suit in Collin County against the East Plano Islamic Center, Community Capital Partners and the Double R Municipal Utility District No. 2A of Hunt and Collin Counties, seeking to block an annexation that would add approximately 402.524 acres to the district and to remove individual board members accused of enabling the project. The filing follows an OAG announcement of an investigation that began in March 2025 and a referral request to the Texas State Securities Board in October; the OAG posted a press release on December 5, 2025 announcing the litigation.

Paxton’s complaint characterizes the development — marketed earlier as EPIC City and more recently named The Meadow — as an “illegal development scheme” and brings securities-related claims against Community Capital Partners, alleging CCP failed to register as a securities dealer and committed securities fraud by misrepresenting the project’s location and leaders’ compensation. Paxton’s office framed the allegations sharply: “The leaders behind EPIC City have engaged in a radical plot to destroy hundreds of acres of beautiful Texas land and line their own pockets,” and, “I will relentlessly bring the full force of the law against anyone who thinks they can ignore the rules and hurt Texans.”

The suit also targets municipal governance moves tied to the Double R MUD. Paxton alleges the district and purported officers took steps to “evade state oversight” by expanding an existing MUD rather than following the serial process for creating a new district, and that a new board approved the annexation petition. Spectrum reported a “highly unusual special meeting” on Sept. 12, 2025, during which prior board members resigned, a new slate was installed and the new board approved adding The Meadow into the MUD’s boundaries; the attorney general further alleges some of the new board members “may not meet the statutory qualifications required under Texas law.”

Project marketing materials and developer representations cited in the filings describe a large residential community outside Dallas that would include more than 1,000 residential units, a mosque, a K-12 faith-based school and retail shops. The proposed site spans parts of Collin County, which is why Paxton lodged the case in Collin County court and asked judges to invalidate the annexation of the roughly 402.524 acres and to restore lawful governance of the district.

The litigation arrives after federal attention to the project. Local reports say the U.S. Department of Justice opened and then closed a civil rights probe last June after Community Capital Partners affirmed “that all will be welcome in any future development, and that you plan to revise and develop marketing materials to reinforce that message consistent with your obligations under the Fair Housing Act,” prompting DOJ to close the investigation. Spectrum has also reported that the U.S. Department of Housing and Urban Development is investigating whether the project violated the Fair Housing Act and involved religious discrimination.

Paxton’s complaint asks the court not only to block development activities tied to The Meadow and invalidate the 402.524-acre annexation, but also to remove the individual defendants from the Double R MUD board and to bar those responsible from creating similar operations in the future. Local court records and the OAG press release indicate the complaint is available for review; EPIC could not be reached for comment in prior reporting.