Great Point Studios is developing a 300,000-square-foot studio complex at 164 Dayton St. in Newark, the site of the former Seth Boyden Court public housing complex, as depicted in this rendering. — Courtesy: Great Point Studios
By Joshua Burd
Lions Gate Films Inc. has secured a key designation by the state Economic Development Authority, allowing it to secure additional incentives in connection with a sprawling studio complex that’s now under construction in Newark.
The company, which is behind titles such as Mad Men and The Hunger Games, is slated to lease 253,000 square feet at the 350,000-square-foot Great Point Studios development in the city’s South Ward. As a Studio Partner, a designation adopted late last month by the EDA’s board, it will be able to capture additional costs as qualified expenses that are eligible for state tax credits — specifically with respect to so-called above-the-line wage and salary payments, which are made to highly paid individuals like directors, producers, writers and performers.
The designation to Lions Gate is one of only three available under the Garden State Film and Digital Media Jobs Act, the EDA said. When applying for tax credits, the studio partner may include above-the-line wages and salary expenses of up to $15 million, $25 million, $40 million or $60 million depending on the amount of qualified film production expenses involved in the project.
“Awarding this designation is a major step in New Jersey’s evolution as a film and television destination,” Gov. Phil Murphy said. “Bringing studios like Lions Gate to New Jersey will allow us to attract more and larger productions to our state and will create good, high-paying jobs for our residents.”
City and state officials joined Lions Gate and Great Point Studios last spring to announce the new studio complex, which is redeveloping part of the defunct Seth Boyden Housing complex on Dayton Street. Great Point broke ground in September, having secured a 10-year, six-month lease with Lions Gate Films Inc. to anchor the facility.
Completion for the complex, which represents more than $194 million in estimated construction and fit-out costs, is slated for September 2024, the EDA said. At that time, the project will include five production stages ranging from 20,000 to 30,000 square feet and will offer a full set of production services on site, including grip and electric, equipment, props, set building, restaurants, location catering, cleaning service and security.
Once fully operational, initial projections anticipate that more than 600 new full-time jobs will be created as part of the development of the facility, the EDA said.
“This is great news for New Jersey’s flourishing film and television industry,” said Tim Sullivan, the authority’s CEO. “Lions Gate will be a welcome addition to the film landscape, and we look forward to seeing the ‘Filmed in New Jersey’ logo on Lions Gate films for years to come.”
Originally created under the Garden State Film and Digital Media Jobs Act, the New Jersey Film and Digital Media Tax Credit Program provides a credit against the corporation business tax and the gross income tax for expenses incurred to produce certain films and digital media content in New Jersey, according to a news release. The EDA added that $100 million of the allocation for film and digital media tax credits is set aside for studio partners.
“This is a wonderful development for the many entertainment industry workers and performers in New Jersey and for the state itself,” Great Point Studios Co-Founder Robert Halmi said. “It could not have come about without the help of Governor Phil Murphy, who recognized the importance of this vast project to Newark, the state, and the region.”