KOKOMO, Ind. (AP) — The state and federal governments have told Kokomo to stop building a downtown baseball stadium because the city accepted a federal hazard mitigation grant for the flood-prone area.

The Federal Emergency Management Agency grant program requires the city maintain the land along Wildcat Creek as open green space, but WRTV reports the city is pushing forward with the $9 million project. April 2013 flooding in the area damaged more than 300 homes.

The Indiana Department of Homeland Security sent a November 24th letter giving the city 60 days to correct the situation. Agency spokesman John Erickson says that if the state doesn't enforce the federal rules, FEMA could penalize Indiana by pulling millions of dollars in funding.

Mayor Greg Goodnight says the city hopes to reach a resolution.