Will use Fort Monmouth’s McAfee Center for office, film support
By Laura D.C. Kolnoski
FORT MONMOUTH – Netflix Inc., on track to purchase almost 300 acres of the former Fort Monmouth U.S. Army base for a major production studio in Monmouth County, was designated a “Studio Partner” by the New Jersey Economic Development Authority (NJEDA) last week, giving the entertainment giant access to expanded benefits under the state’s Film and Digital Media Tax Credit program.
On Monday, a source close to Netflix told The Two River Times that the fort’s McAfee Center, a 1997 technology development building, will be among the first to be adaptively reused. The structure, named for Dr. Walter S. McAfee, a civilian engineer who worked on pivotal projects there, will become office space for productions filming on the studio lot with support space dedicated to wardrobe, hair and make-up, and dressing rooms.
Netflix is not expected to close on the property until 2027, as the company must still seek and obtain numerous municipal, county and state approvals. Officials said Netflix plans to open the facility in 2028, with the full build-out estimated to take seven to 10 years.
Under the Studio Partner agreement announced by Gov. Phil Murphy and NJEDA chief executive officer Tim Sullivan, Netflix is committed to occupying its New Jersey production facility for at least 10 years and is eligible for a 40% base tax credit for qualified expenses on state film projects.
“The expanded Film and Digital Media Tax Credit program, coupled with strong state support, make a compelling case for the return of major production companies to New Jersey, the birthplace of film,” Murphy said, referencing Thomas Edison. “With Netflix leading the way, the creation of new, world-class studios has solidified New Jersey as a national leader in film and television production. These substantial investments will create thousands of good-paying jobs, support small businesses and vendors, and stimulate the regional economy.”
Production-related spending in the state has increased since Murphy reinstated the tax credit program vetoed by then-governor Chris Christie in 2016. It was expanded in 2021, increasing the annual allocation to $400 million, and is funded through 2039. Among its provisions is a tax credit of up to 35% of qualified expenses, including a Diversity Tax Credit of up to 4% for productions that employ women or people of color. Firms designated Studio Partners have access to a separate $150 million pool of incentives under the program.
Last December, Sullivan said Netflix plans a $1 billion investment in Netflix Studios Fort Monmouth, its second largest after New Mexico, creating 3,500 construction jobs and 1,500 permanent jobs. Over one million square feet of production and support space with 12 soundstages, backlots, a helipad and more will be created. Allowable uses include a bank, utility plant, childcare facility, fitness center, hotel and “structures for the sale, display, and/ or rentals of goods; studio tours, theatrical performances, public film screenings/theaters, and/or experiences related to motion picture, television, and broadcast studios.”
Netflix will pay $55 million for the property at closing.
“I want to thank Governor Murphy and his administration for their steadfast commitment to bringing this project to fruition,” said Netflix co-CEO Ted Sarandos in a press release. “(The designation) takes us one step closer to making New Jersey an international center for studio production and Netflix is excited to be a part of it.”
Netflix is currently preparing a mandatory conceptual review which includes the site plan, part of a 36-month approval period involving reviews by local, county and state agencies. After emerging as the top bidder for what’s known as the fort’s Mega Parcel in 2022, the company entered into a Purchase and Sale and Redevelopment Agreement with the Fort Monmouth Economic Revitalization Authority (FMERA) in January 2023. The firm’s redevelopment plans were unanimously approved by the authority in February 2024.
“(Netflix’s plan) was adopted ahead of the contractual timeline, which is arguably the largest hurdle to overcome in the approval process,” said Sarah Giberson, FMERA’s director of real estate development. “It sets them on a pathway forward to move more expeditiously with the remainder of their approvals.”
State Sen. Declan O’Scanlon (R-13) called Netflix’s commitment to New Jersey “historic” while state Sen. Vin Gopal (D- 11), said that by expanding the tax credit program, the state “sought to create incentives that would encourage studios to make a long-term commitment to our state. Netflix’s designation as a studio partner proves we were successful.”
Fort Monmouth’s 1,126 acres span portions of Eatontown, Oceanport and Tinton Falls, but the Mega Parcel is only within the borders of Eatontown and Oceanport.
“Netflix’s Film Studio Partner designation is a momentous event in the continuing redevelopment of the Fort Monmouth property,” said Oceanport Mayor Thomas J. Tvrdik. “That a little town like Oceanport will be home to part of Netflix’s East Coast operations center is simply incomprehensible for someone like me who has spent his entire life in this town.” Eatontown Mayor Anthony Talerico Jr. added, “The closure of Fort Monmouth left an enormous void in the region. The size and scope of the Netflix project will bring enormous benefits and revitalize the area.“
Eatontown is among an increasing number of Garden State municipalities, like Asbury Park, Fair Haven, Holmdel and others in Monmouth County, joining the “Film Ready New Jersey” program of the New Jersey Motion Picture and Television Commission, which assists localities seeking to market their sites and services to film companies. Last year, Sullivan led a delegation of state officials on a trip to California to pitch the value of filming in New Jersey, meeting with executives from major studios and production companies.
An increasing number of major motion pictures are being made throughout the state, including “A Complete Unknown” starring Timothée Chalamet as a young Bob Dylan. On Monday, the cast and crew were filming in and around Cape May’s Congress Hall, standing in for Rhode Island’s Newport Jazz Festival in the 1960s. Last month, the production filmed in Red Bank.
Sullivan said the film industry created 8,500 jobs across New Jersey last year, most union jobs. Lionsgate is building a major studio in Newark and 1888 Studios LLC will soon commence operations on a former Texaco site in Bayonne.
McAfee Center
Fort Monmouth’s McAfee Complex on Route 537 (Avenue of Memories through the fort) sits on 29.43 acres in Oceanport and includes 15 structures, most of which will be demolished by Netflix. The 90,000-squarefoot, two-story McAfee Center was home to the Intelligence and Information Warfare Directorate of the Communications-Electronics Research, Development and Engineering Center. The building has a 6-foot loading dock, eight 2,400-square-foot raised floor labs, and an anechoic chamber designed to absorb reflections of sound or electromagnetic waves. A FMERA showcase for prospective buyers was held there in 2018. A former FMERA official told The Two River Times Netflix toured the McAfee Center early in the bidding process and liked what they saw.
Netflix’s approved plan specifies the studio complex will be built in phases, with the McAfee Complex included in Phase 1.
The article originally appeared in the May 16 – May 22, 2024 print edition of The Two River Times.
