Lawsuit claims Lino Lakes development moratorium discriminated against Muslims

The developers behind a proposed mosque-centric housing development in Lino Lakes have sued the city over a year-long development moratorium in part of the city, claiming the city’s action discriminates against Muslims.

City Council members approved the moratorium on development in the northwest corner of the city in July, putting the Madinah Lakes project on hold. Now, Zikar Holdings LLC, the group behind Madinah Lakes, is asking the courts to intervene.

Plaintiffs Jameel Ahmed and Faraaz Mohammed, co-principals of Zikar Holdings, name Lino Lakes and City Council members Michael Ruhland and Chris Lyden in their federal lawsuit, alleging the defendants “do not want Muslims in their City” and that they “have made a series of obviously discriminatory statements and official decisions in furtherance of that unlawful and unconstitutional purpose.”

Sam Diehl, an attorney representing the plaintiffs, delivered remarks on the filing Tuesday outside the federal courthouse in downtown Minneapolis.

“This is not a situation where we have to rely solely on circumstantial evidence or inferences of discrimination,” Diehl said. “But members of the City Council have — from the dais at city council meetings — made blatantly anti-Muslim statements and demonstrated a blatant disregard for the law and for the requirement that they consider applications on their merits and not on the identity or the religion of the applicant.”

The lawsuit comes one day after the Lino Lakes City Council voted 3-1 to censure Lyden because he appeared to endorse an Islamophobic rant that was sent to his city email account. Ruhland was the only member who voted against the resolution.

In an email dated Aug. 4, the sender, citing a New York Times report on the conflict over the Madinah Lakes development, spouted hateful rhetoric against Muslims and signed off by writing, “Good luck halting the Muslim conquest of Minnesota!”

On Aug. 6, Lyden responded using his official city email: “Might be the best email I have ever received! Thank you Sir!”

The claims

In their filing, Ahmed and Mohammed drew on how the city approached a previously proposed 707-unit housing development planned for the same property Madinah Lakes sought to build on.

Those parcels on what is now a sod farm were inside the “10-year staging area” of Lino Lakes’ comprehensive plan, meaning future development in that area would be within the city’s anticipated infrastructure expansion needs and would “not negatively impact natural features of the community,” the lawsuit states.

The plan was submitted by Integrate Properties, LLC (IPL) in December 2021, was reviewed within two months and did not receive scrutiny on its potential impact on the environment or congestion on Main Street. However, IPL did not move forward with developing the property, clearing the way for Zikar to explore putting the Madinah Lakes project there.

In March, Zikar entered an agreement to buy the sod farm, contingent on its plan being approved by the city. The developer posted a video online previewing Madinah Lakes, and within a week, a city planner allegedly called Mohammed to share that the video had gotten backlash from community members and that he should attend the next City Council meeting.

At that March 25 meeting, Council Member Ruhland introduced an item to the council’s April 1 work session agenda to consider a development moratorium, citing concerns about water infrastructure. The plaintiffs argue that Ruhland wouldn’t have asked the council to consider a development moratorium if not for the community’s response to the Madinah Lakes proposal.

“Defendant Ruhland proposed that the moratorium on residential development in response to negative, anti-Muslim opinions they heard from Lino Lakes residents regarding Madinah Lakes and particularly the masjid it proposed,” the lawsuit states.

Over the next few months, opponents and supporters of Madinah Lakes packed City Council meetings to voice their opinions. The City Council was set to consider Zikar’s development plan on July 1, before the moratorium had been adopted, but opted to table the vote until Aug. 19. The moratorium gained final approval on July 8.

The plaintiffs state that council members claimed the moratorium was due to infrastructure concerns and had nothing to do with anti-Muslim sentiment, yet debate on the issue repeatedly focused on Muslims and immigration.

The lawsuit seeks to stop Lino Lakes from enforcing the moratorium and to prevent the city from requiring any conditions for Madinah Lakes that “is not neutral and generally applicable” or was not part of the city’s comprehensive plan, zoning code or any other ordinance at the time Zikar submitted his proposal.

5 EYEWITNESS NEWS reached out to the city for comment. The city said its lawyers are reviewing the case and have no comment at this time.

A full copy of the lawsuit is included below: