AG Paxton Stops Rogue Utility District Supporting Islamic Center Development

TX Attorney General News Releases

Filed March 20th, 2024

Detected March 20th, 2026

Summary

Texas Attorney General Ken Paxton secured a temporary restraining order (TRO) against Double R Municipal Utility District (MUD) to halt its actions, including appointing new directors and considering agenda items. The lawsuit alleges the MUD was unlawfully taken over to support the East Plano Islamic Center development, potentially allowing developers to avoid state oversight and impose taxes without proper process.

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What changed

Texas Attorney General Ken Paxton has obtained a temporary restraining order (TRO) against the Double R Municipal Utility District (MUD) No. 2A of Hunt and Collin Counties. The TRO prevents the MUD and its purported directors from taking substantive actions, including appointing new board members and considering specific agenda items at their scheduled meeting. This action stems from a lawsuit filed by the AG's office alleging that the MUD was unlawfully taken over in September 2025 by developers to support the East Plano Islamic Center (EPIC) development, known as "EPIC City," potentially allowing them to avoid state oversight and impose taxes on citizens through an engineered scheme rather than the proper creation of a new MUD.

The TRO is a critical step to freeze the MUD's activities until a temporary injunction hearing later this month. The AG's office asserts that allowing the MUD to proceed with its meeting would further an illegal scheme. The implications for regulated entities, particularly municipal utility districts and developers involved in large projects, include heightened scrutiny of MUD formation and governance, and strict enforcement against alleged attempts to circumvent state law and oversight. Failure to comply with such orders can lead to significant legal consequences, as demonstrated by this enforcement action.

What to do next

Review MUD governance and formation processes for compliance with Texas law.
Assess any involvement with or support for the EPIC City development.
Consult legal counsel regarding potential exposure to enforcement actions.

Source document (simplified)

Attorney General Ken Paxton has secured a temporary restraining order (“TRO”) that stops Double R Municipal Utility District No. 2A of Hunt and Collin Counties (“Double R MUD”) from taking any substantive action at its scheduled meeting tomorrow, Friday, March 20. Among other actions stopped, the TRO prevents Double R MUD’s board of directors from directing the activities and operations of the MUD, including accepting or appointing new directors. The MUD and its purported directors are also restrained from taking up or otherwise considering or acting upon any agenda item that was put forth for tomorrow’s scheduled meeting—unless it falls under extremely limited circumstances related to ongoing litigation.

The TRO follows a lawsuit by Attorney General Paxton against Double R MUD and its purported officers for taking over an existing MUD and simultaneously expanding that MUD to support the East Plano Islamic Center (“EPIC”) development known as “EPIC City.”

MUDs have the power to impose taxes on Texas citizens and are subject to legal requirements, but Double R MUD engaged in highly unusual activity in September 2025. In an apparent effort to allow EPIC City developers to avoid state oversight, it appears the developers engineered the takeover of an inactive, existing MUD—rather than engaging in the process to create an entirely new one.

The meeting scheduled for tomorrow could further the scheme that was orchestrated at the September 2025 meeting, which is why Attorney General Paxton sought and successfully obtained a TRO. The TRO temporarily freezes Double R MUD from any concrete action until a scheduled Temporary Injunction hearing later this month.

“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 Attorney General 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.”

To read the TRO, click here.