GRAND RAPIDS, MI -- A story about a white man urinating on a 5-year-old black child and calling her a racial slur was fabricated, Michigan police said.

Grand Rapids police and prosecutors late Friday said they determined the story was not valid and said no charges would be issued against a 60-year-old man arrested following the initial report on Wednesday.

Police said several children, all 7 or younger, were playing together sometime before 6 p.m. Wednesday when one of the children urinated on the 5-year-old girl.

Kent County prosecutors said the parents of the children, in talking with them, ultimately determined the children "concocted the story to avoid trouble."

"We appreciate the conscientiousness of the parents in bringing the matter to the attention of the police, and continuing to ask their children questions as new evidence was obtained," prosecutors said.

Prosecutors said the 60--year-old man had a "verifiable alibi" from other people who vouched for his whereabouts.

The allegations, when first reported late Wednesday, caused concern across the community and NAACP leaders on Friday said the incident should be considered both a hate crime and sex assault.

In the initial report, the children told police they were playing hide-and-go-seek along Courtney Street NW, just west of Tamarack Avenue, when a man urinated on the girl through a chain-link fence.

The suspect was a person who lived in the neighborhood and did odd jobs.

"The community and members of the media were understandably interested and concerned about the allegations, Kent County Prosecutor Chris Becker said.

"But this is a prime example of why it's so important to wait until all the evidence has been gathered and the criminal investigation has been completed before jumping to any conclusions," he said.

Becker said the children involved with making the complaint were first interviewed by trained specialists with the Children's Advocacy Center, but they didn't admit the truth until later when their parents talked with them further.