The State Department said that it will work with Libyan officials to find a place for leader Moammar Gadhafi to stay during his United Nation's visit next month.
New Jersey residents were outraged at a request made by Gadhafi to stay in the small town of Englewood for the meeting. He wants to live in a special air conditioned North African-style tent outside a Libyan-owned mansion there.
Gadhafi drew criticism after giving Abdel Basset al-Megrahi a heros welcome after Scotland released him from prison. Al-Megrahi was convicted in the bombing of the 1998 Pan Am Flight 103 over Lockerbie, Scotland, which killed 259 people.
Now, Englewood residents see the Gadhafi as a "dangerous dictator whose hands are covered with American blood."
Some of the victims of the families killed in the Lockerbie bombing also live in Englewood, which has sparked even greater concern.
State Department spokesman Ian Kelly said authorities will keep in mind "very raw sensibilities" of the families.
"Our priority has been and will remain the families of the victims of this tragedy," he said. "We, of course, are sensitive to the concerns of the communities that might be affected by any travel arrangements made for the Libyan delegation."
U.S. officials have already denied Gadhafi's request to put up his tent in New York City.