Farmers Branch, Texas ? Clutching American flags and signs that read “America was formed by immigrants,” more than 300 protesters on Saturday denounced a city proposal that would prohibit landlords from leasing to illegal immigrants.

About two dozen counter-protesters staged a demonstration nearby.

The proposal by City Councilman Tim O’Hare would also make it tougher for illegal immigrants to work in the Dallas suburb, penalize businesses that employ undocumented workers and make English the city’s official language.

Protesters branded the proposal a racist initiative that would single out Hispanics, who make up about 37 percent of the city’s population, according to U.S. Census Bureau figures from 2000.