By Joshua Burd
Netflix has taken a major step toward building a sprawling production studio in New Jersey, emerging as the preferred bidder for some 300 acres at the iconic Fort Monmouth property.
While the deal is by no means final, the streaming giant on Wednesday confirmed its selection for the so-called Mega Parcel in Eatontown and Oceanport, following a solicitation by the state agency that spearheads redevelopment of the former U.S. Army base. A representative for the agency, the Fort Monmouth Economic Revitalization Authority, also confirmed that it has made a selection based on its scoring criteria, but did not identify Netflix by name.
The company, whose interest in the Route 35 site became public last fall, still faces a due diligence period in the coming months, as well as an examination of the Fort and finalizing economic terms. Additional due diligence would follow if it signs a sale agreement with the state in the next few months, along with various state, county and local approvals.
“While there is still work to be done with the Economic Development Authority and local leadership to finalize the deal, we are thrilled that FMERA’s preferred choice for the Fort Monmouth development project is our proposal for a state-of-the-art production complex,” a Netflix representative said Wednesday. “If our plans are approved, we hope to build a facility that will create significant economic impact and job growth for New Jersey, a state loaded with creative talent and technical expertise.”
The 292-acre Mega Parcel, which represents more than a quarter of the Fort Monmouth property, drew proposals from three other bidders: Extell Acquisitions LLC, Mega Parcel Development LLC and RDR Partners LLC, a joint venture of Russo Development, Dinallo Development and River Development Equities.
Netflix declared its interest last October, as reported by The New York Times, after outreach by Gov. Phil Murphy. The story noted that Murphy and his team have been courting Netflix since at least 2019, dangling lucrative tax credits for the film and television industry that New Jersey had reinstated in 2018 and subsequently expanded.
“I am incredibly excited to hear about Netflix’s proposed investment,” Murphy told the Times in a statement for the Oct. 26 story. “While there is an objective process that any and all applications will have to go through, this is yet more evidence that the economic plan my administration has laid out is working and bringing high-quality, good-paying jobs to our state.”
Netflix told the publication that it would create a “state-of-the-art production facility” at the shuttered base with soundstages, postproduction buildings and backlot filming areas, confirming speculation that arose last summer. And it would be among the latest in roughly a half-dozen high-profile film and television production facilities to be announced in the state over the past year.
On Wednesday, FMERA said it was moving ahead with its top bidder, but emphasized what was still to come.
“FMERA can confirm that it has identified and contacted the highest-scoring proposer for the Mega Parcel,” an agency representative wrote. “(However), FMERA will make no further representations relative to the potential purchase of property until such time as the staff is prepared to recommend the approval of a fully negotiated Purchase and Sale Agreement and Redevelopment Agreement to the FMERA Board. Please be advised that this process may take several months and no recommendation has been made to-date.”
NYT: Netflix to bid on 289-acre Fort Monmouth parcel, eyeing massive production hub
