The group seeking the town council’s sponsorship on up to $600,000 worth of state and federal grants has decided not to apply for them at this time.

Steve Alexander and Kitty Hawk Development withdrew the letter of intent they had submitted to the state.

Alexander faced questions from the town council in June about why the town appeared to have been presented as the grant sponsor on that letter when the council hadn’t been approached about sponsoring the application yet.

Alexander was seeking the money to make changes to Salt Creek and its watershed. He did not present the council with details about how and where alterations would occur.

For 20 years, Alexander’s group has owned 72 acres near Nashville that’s been envisioned for a variety of uses, including housing and a hotel. Most of it is on land currently classified as floodplain or floodway, which limits its usage.

Alexander said in an email July 20 that “we believe there was an error in the letter of intent that warrants its refiling at some point in the future. We hope to have further discussions in the future with the interested parties and see if there is consensus to apply for those grants.”