FERNDALE, Mich. -- Ferndale officials have dismantled a neighborhood basketball court and now they could be in trouble with the state.

Residents petitioned to have city officials take down the court in Wanda Park, claiming it was a magnet for trouble after a basketball game ended in a fight and gunfire last month.

"They were playing basketball. Somebody grabbed a gun and just started shooting. Nobody got hurt," said resident Don Van Gilder.

Three people were arrested.

Resident Shane Cunningham gathered more than 200 signatures to get a moratorium on basketball at the park. The city complied.

But taking down the court has put Ferndale in violation of a grant agreement because the park was built with funding from the state.

"The state had helped the park and the basketball is a permanent fixture," parent Ann Danielak said.

The city plans to ask the state to modify its grant agreement and allow the court to be used for tennis or green space.

If the state finds the city in violation, the city could have to repay the funding, which could cost over $100,000. It could also make Ferndale ineligible for future park funds.