A North Austin neighborhood group Monday plans to respond to what members call "bullying tactics" by developers.

The group Responsible Growth for Northcross opposes plans to build a Wal-Mart at Northcross Mall. Members claim developers sent a threatening letter to City of Austin officials last week, and they plan to take action as a result of that alleged threat.

On Friday the retailer agreed to scale back the proposed Wal-Mart supercenter from 219,000 square feet to 186,000 square feet. But Wal-Mart says it will only build the smaller store if opponents don't sue.

In a letter to the City of Austin, Gerald E. Taylor, senior design manager for Wal-mart Raelty, wrote, "We intend to fulfill this reduction and the voluntary items in our term sheet by filing a minor revision to Lincoln's approved and released site plan prior to securing a building permit, unless 3rd party litigation is filed related to Lincoln's site plan. In that event, we may be forced to re-evaluate the voluntary items in the term sheet."

Responsible Growth for Northcross announced Monday they will put off a planned protest at Northcross Thursday and has instead planned two events to respond to Wal-Mart's statement. Group members are planning to circle Austin City Hall Thursday at noon to show that neighborhoods will not be bullied. The group also plans to protest at a local Wal-Mart on Saturday.

Reponsible Growth for Northcross has also asked Wal-Mart CEO Lee Scott publicly retract his threat and apologize.

Late Monday, Wal-Mart officials responded, "It is absolutely false to claim that Wal-Mart is threatening anyone. Wal-Mart remains committed to Austin and continues to move forward with one of the first 2-story, urban design concepts."

Senior public affairs manager Lisa Elledge said the statement that Wal-Mart may be forced to reevaluate its options is true and is not a threat.

Opponents have said traffic around the store is one of their biggest concerns. A study showed Wal-Mart would bring about 10,000 car trips a day to Northcross; however, city leaders say other Wal-Mart's of similar size have drawn almost twice the expected amount of cars.