Developers sue Lino Lakes over building moratorium, claiming anti-Muslim bias

Developers of a proposed Muslim-centric development in Lino Lakes have filed a federal lawsuit, alleging the city’s one-year moratorium on new development is “unconstitutional” and motivated by anti-Muslim bias.

The city passed the moratorium in July following intense debate and community pushback over the proposed 156-acre Madinah Lakes development. Council members said it would give the city time to create a master plan for 900 acres of undeveloped land, including the project site.

After the lawsuit was filed Tuesday, attorneys representing Zikar Holdings, the project developer, held a news conference outside the U.S. District Courthouse in Minneapolis outlining violations of the First and Fourteenth amendments and the Fair Housing Act, among other claims.

“My clients both are developers, but they’re also Muslims who want to live in a development,” said attorney Sam Diehl. “They want to live in this community, and they want to live alongside non-Muslims because their development is open to anybody.”

The proposed development includes more than 400 homes, businesses and a mosque.

Zikar founders Jameel Ahmed and Faraaz Mohammed, who also goes by Faraaz Yussuf, did not attend the news conference. Diehl said one had a medical issue and the other had a personal conflict.

The lawsuit names the city, along with Council Members Chris Lyden and Michael Ruhland as defendants. Lyden and Ruhland did not return calls or messages seeking comment. Meg Sawyer, the city’s communications manager, said in an email that the city has no comment and the matter has been referred to legal counsel.

The lawsuit cites an email by Lyden, praising an anti-Muslim rant , as evidence of religious bias. Lyden was one of four council members who voted for the moratorium. On Monday, the City Council passed a resolution censuring Lyden over the email.

The moratorium and other actions from the city have delayed and increased the cost of the development, according to the complaint.

“Plaintiffs thus are unable to move forward with their proposed development because of an obviously discriminatory, unlawful, and unconstitutional moratorium. They have no choice but to come to Court for redress,” read the complaint.

Many residents have spoken out against Madinah Lakes at previous city meetings, citing concerns about increased density, traffic, water supply issues, and harm to the environment. Some argued that the project developer, Zikar Holdings, is “inexperienced,” and that the project needed more study before city approval.

In response, Diehl said the background of the developer has “never” been a part of the Lino Lakes process for approving developments.

Another attorney for the plaintiffs, Matt Duffy said concerns about overwhelming the water supply is a “red herring” because the city has already approved a new well that will resolve the issue.

The lawsuit asks the city to withdraw the moratorium and allow Zikar’s comments on the project application. It also demands that the city follow its comprehensive plan and current regulations regarding new developments.

The plaintiffs are seeking a jury trial, but they are also open to a “fair resolution” outside of court, Diehl said. “The court is just a means to get the fair treatment that they [the plaintiffs] deserve.”

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