Developers Withdraw Proposed Muslim-Focused ‘Sustainable City’ in Kaufman County After Investigation and Local Backlash, Rep. Says

Developers have withdrawn plans for a proposed Muslim-focused “sustainable city” in unincorporated Kaufman County, Texas, Republican U.S. Rep. Lance Gooden confirmed to The Daily Caller, following local outcry and a formal investigation launched by the Texas attorney general.

Preliminary plans for the large development, which were reported earlier this year, suggested the project could accommodate up to 20,000 residents and include multiple new water districts. The potential developer identified in planning documents was SEE Holding, a privately held global holding company headquartered in Dubai that portrays itself as focused on sustainability and pursuing net-zero emissions initiatives. An engineering and design firm, Kimley-Horn, was also listed in the development plans.

The proposal became public in early February and quickly provoked concern among Kaufman County residents, some of whom alleged county officials had been secretive about discussions with the developer. Several residents, speaking anonymously to The Daily Caller in February, expressed fears the planned community was effectively a scheme to bring large numbers of Arab nationals to a rural Texas county and accused proponents of attempting to establish a so-called “sharia city.” Those allegations prompted Texas Attorney General Ken Paxton to announce on Feb. 9 that his office had opened a formal investigation into the matter. In his post announcing the probe, Paxton wrote: "BREAKING: I’m announcing an investigation into a potentially illegal “sharia city” development in Kaufman County. While you’re on American soil, you will obey America’s laws."

Tensions escalated after reports that developers, county officials and community leaders met on March 18 in what some residents described as a closed-door meeting. Kaufman County Judge Jakie Allen disputed that characterization, telling The Daily Caller there was “not a closed meeting” and noting that "all developers are required to meet with our development services department." According to Allen, the county’s development services team routinely reviews county codes and regulations with prospective developers before any formal plan is advanced for review.

Amid the controversy, Representative Lance Gooden said he personally contacted the developers within the past 24 hours to urge them to reassess whether Kaufman County was the right fit for their project. “I spoke with them directly within the past 24 hours and advised them to step back and reconsider whether this was the right time and fit for their property,” Gooden told The Daily Caller. “Following that conversation, I’m pleased to announce they’ve decided not to move forward in Kaufman County. This matter is resolved, and there is no cause for continued concern.”

The Daily Caller said it reached out to multiple parties for comment following the developers’ decision. As of early Monday afternoon, Kaufman County Commissioner Terry Crow and representatives of SEE Holding had not responded to the outlet’s requests for comment. Kimley-Horn did not respond to a request for comment, and Attorney General Ken Paxton’s office had not returned the Caller’s request for an update on the investigation.

The episode highlights several intersecting issues at the local level: how counties handle large-scale development proposals, the role of foreign-based firms in U.S. land projects, concerns about transparency in government meetings, and community anxiety when development proposals touch on religion, immigration and infrastructure demands such as water. Residents had specifically raised worries about the pressure three new water districts would place on existing supplies in a rural county.

County officials maintain that routine developer briefings occur as part of the planning process and that documentation and code reviews precede any formal acceptance of plans. With the developers’ withdrawal confirmed by Rep. Gooden, the immediate controversy in Kaufman County appears to have subsided, though questions remain about the findings and status of the attorney general’s investigation and whether similar proposals may emerge in other jurisdictions.

The Daily Caller continues to seek comment from the parties involved, including SEE Holding, county officials and the Texas Attorney General’s office, and residents and local leaders are still watching for any further developments tied to this episode.