U.S. Dept. of Justice ends investigation of EPIC City

DALLAS - The U.S. Department of Justice has dropped its investigation into the controversial Muslim-centric development, EPIC City.

Community Capital Partners hopes 402 acres of land in Collin and Hunt counties can be developed into more than 1,000 homes, a mosque, a K-12 school, townhomes, apartments and commercial developments.

In a letter to Community Capital Partners, Assistant Attorney General Harmeet Dhillon said the department was closing its investigation. 

"CCP has 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," Dhillon said in the June 13 letter. "Based on this information, the Department is closing its investigation at this time."

The Council on American Islamic Relations released a statement Wednesday afternoon applauding the decision to drop the investigation.

What they're saying:

"We welcome the dropping of this investigation and hope the DOJ’s actions send a clear message to the governor and other officials in Texas that they should similarly drop their Islamophobic witch hunt targeting Muslims in that state," CAIR National Executive Director Nihad Awad said. "Elected officials should respect the Constitution and serve all state residents instead of abusing their authority to discriminate against Muslims."

The organization had previously said the investigations amounted to "zoning harassment, discriminatory enforcement, and politically motivated intimidation."

Representatives for the project said last month that development on the project hasn't started and only traffic, water and flood studies have happened at the site near Josephine, Texas.

The group told the Department of Justice that they expect to start the permitting process in July or August, but development may take several years.

The development sold out its first phase of development, around 500 lots, within six months. Developers are still accepting investors for the second phase of the development.

EPIC Ranches is another development near EPIC City that offers larger plot sizes of up to an acre and townhome sites that are about a half mile away from EPIC City.

House Bill 4211

Last week, Gov. Greg Abbott signed legislation targeting the way the business structure, future sales and investor rights are tied to the project.

The law requires disclosure that buyers are purchasing an interest in a business and not the residential property itself. 

The investor would be able to sell the share should they choose, without being charged a fee from the business.

Under the law, EPIC City cannot use a religious exemption to limit sales to members of a certain religion.

CCP has said they would adhere to the Fair Housing Act.

Dept. of Justice investigation

Sen. John Cornyn requested a DOJ investigation into EPIC City in April, bringing up concerns that the community could discriminate based on faith.

Cornyn sent the letter to Harmeet Dhillon, the assistant attorney general for civil rights, asking the agency to look into possible discrimination against other religious groups.

State investigations into EPIC City

Dig deeper:

In addition to Cornyn, EPIC City has drawn the attention of Governor Greg Abbott, Attorney General Ken Paxton and other Texas leaders.

The developers and East Plano Islamic Center have also been targeted by the Texas Commission on Environmental Quality who sent a letter to CCP about the permits required to create a municipal utility district.

Gov. Greg Abbott has also asked the Texas Rangers to investigate the mosque and related businesses.

In a post about EPIC City on social media, Abbott commented, "Sharia law is not allowed in Texas."

The mosque was also sent a letter from the Texas Funeral Service Commission and has drawn the attention of the Texas Workforce Commission.

Paxton opened an investigation into communications between EPIC and city officials in Plano, Richardson and Wylie. His office is also looking into CCP.

David Coale, a constitutional lawyer who is not involved in the case, said the investigation is permissible by state law.

"We, of course, have state laws that prohibit discrimination in housing sales as well. So, the state attorney general is within his right to ensure state law is being complied with," Coale said.

The other side:

EPIC City and Community Capital Partners Inc. hired high-profile attorney Dan Cogdell in April to represent them in Texas investigations over the financial and free housing laws and whether the mosque has conducted illegal funerals.

Cogdell called the investigations a result of "racial profiling."

The lawyer said the developers have "done nothing illegal and we will cooperate fully with all investigations-regardless of how misguided and unnecessary they are."

"The idea that we have to wade through this many investigations, spend this much on lawyers, spend this much time & angst going though it – is shocking and disappointing to me," Codgell said.

Cogdell said none of the investigations would be happening if the community was planned around a church or temple.

"These folks are US Citizens, law-abiding and Texans," he said.

Cogdell called claims from some, including Texas Gov. Greg Abbott, that EPIC is trying to enforce Sharia law "dangerous."

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