Seller is NOT the Designated Developer??? Encounter this before?

[Namit S.]

Recently I came across an opportunity to buy a vacant lot in Jersey City. 

Yesterday a day before the best and final our realtor informed us that the seller found out from the JCRA that they are not "designated developer" for the vacant lot they own. 

Has anyone encountered this situation before? As a buyer, it is very risky for me to acquire this lot that I can't develop on, but as a seller, what does it mean for them? Is it as simple as filing some paperwork with the City and then putting the lot back on the market a few weeks / months later?