Several 911 calls directed police to the area of Harrison Street and Myrtle Avenue at 11:45 p.m., Grewal said.
"There were reckless ones on the block arguing," an area resident said. "And someone decided to shoot at someone."
Near the intersection, responding officers found three men.
"Two of the men were observed by police to be armed with handguns," Grewal said.
"The police officers immediately exited their car and confronted the men," the attorney general said. "During the encounter, one officer fired his service weapon and fatally wounded the 24-year-old Passaic man, who was armed with a handgun.
"Another officer fired in the direction of the second armed man. That man, who was not struck by gunfire, fled the scene on foot."
The 24-year-old man was taken to St. Mary’s General Hospital in Passaic, where he was pronounced dead, Grewal said.
"Police recovered a handgun from the scene," he said.
The Attorney General’s Shooting Response Task Force reviewed the circumstances under the guidelines of a new measure, signed into law by Gov. Murphy on Wednesday, that requires the state's top law enforcement office to lead investigations when someone dies during official police contact.
At least one resident was grateful for the police response.
"I know my family was put in danger... I know I don’t feel safe in my own house anymore," the resident said. "I don’t feel it’s safe for my kids to go outside."
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