Under the terms of the agreement released by Dewey officials, Hovnanian will pay at least $12 million for the undeveloped tract. If the company ends up buying only part of the site, it will still pay at least $6 million for that portion, according to the agreement.

Completion of the sale is contingent upon Hovnanian obtaining the necessary regulatory and rezoning approvals from state and local agencies, with an eight-year window to get that accomplished. The potential buyer hasn't indicated what it plans to do with the site once the sale clears, but the Red Bank-based company is one of the nation's largest homebuilders.

The sale is also contingent on the approval of Dewey shareholders, which is likely to occur at the company's next annual meeting, slated for March 8. Officials of the company, which makes electronic and electromechanical systems for the military, say they have not decided how to use the proceeds. Richard S. Meyers, SVP of SBWE Inc. of Hasbrouck Heights, is the exclusive broker for the property.