By Laura D.C. Kolnoski
FORT MONMOUTH – Netflix has completed a key initial phase in purchasing almost 300 acres of Fort Monmouth known as the Mega Parcel for its new film production studio. The next step – Netflix’s presentation of its Reuse Plan to the Fort Monmouth Economic Revitalization Authority (FMERA) – is imminent, officials said.
“Netflix has moved out of the due diligence period and continues to move forward with good faith efforts to finalize their concept plan,” Kara Kopach, FMERA executive director, said at the authority’s Sept. 20 meeting, adding she expects the plan to be submitted “soon.”
During due diligence, the potential purchaser (Netflix) inspects the property to assess the condition of structures, infrastructure and land, a critical step in determining if the sale will proceed. Due to the size and nature of the Mega Parcel – open and forested spaces combined with numerous buildings from various eras of the U.S. Army’s almost 100 years at the fort – Netflix requested and received several time extensions to complete the inspections.
“The Reuse Plan Amendment will be introduced at a FMERA board meeting, at which time the board will be asked to approve the transmittal of a copy… to the governing body of each host municipality,” Kopach said. Eatontown and Oceanport are the host municipalities. Fort Monmouth spans portions of those towns, along with Tinton Falls, but no Tinton Falls property is within the Mega Parcel.
As per standard procedure with all fort property sales, Eatontown and Oceanport will have 45 days to issue a written report with recommendations regarding the proposed plan and may schedule public hearings on the matter. FMERA staff then reviews each town’s report and prepares an analysis with proposed reasons for accepting or not accepting the recommendations. Following review by the FMERA board, members could then approve the Reuse Plan amendment by an affirmative vote of seven members.
In Oceanport, Mayor Jay Coffey said Netflix’s plan will come up twice with opportunities for public questions and comment during the 45-day review period – at a regularly scheduled council meeting and again at a regular planning board meeting.
“We will follow the normal course of action and will discuss it with all our professionals, including the engineer and attorney,” Coffey said Tuesday. “It will be a collaborative effort.”
Through the Purchase and Sale and Redevelopment Agreement (PSARA) between Netflix and FMERA executed in January, Netflix will pay $47 million for the Mega Parcel, along with an additional $5 million “utility contribution” and another $3 million toward the relocation of FMERA’s offices for a total at closing of $55 million.
Netflix Studios Fort Monmouth “shall consist of a sustainable and integrated film studio campus which shall be completed in phases,” according to FMERA documents. For Phases 1 and 2, Netflix’s total estimated investment is $848 million, with $806 million of that expected for Phase 1.
Phase 1 will see the construction of 12 soundstages ranging from 15,000 square feet to 40,000 square feet, with a maximum interior clear height of 50 feet and a maximum exterior height of 70 feet. The soundstages will have a minimum buildout of 180,000 square feet and a maximum buildout of 480,000 square feet.
The first phase may also include mill space, production support buildings, office buildings, production services buildings, a commissary or cafeteria, basecamp with trailer parking, a helipad, backlots for large temporary or permanent exterior sets, swim tank(s), consumer experience centers and/or attractions, retail components including food and beverage facilities, a theater, a visitor center and/or a hotel, wind or small solar systems, and rooftop solar.
Among the existing structures FMERA hopes Netflix will renovate and reuse are Mallette Hall, the McAfee Center, the Expo Theater, and the former library, currently being used as offices for FMERA and the New Jersey Economic Development Authority.
Phase 2 would allow Netflix to build more of the same types of production and support facilities delineated in Phase 1. A Netflix spokesperson previously told The Two River Times the company would look at preserving the Expo Theater for possible public use. The spokesperson added there were no immediate plans to build a hotel, but one might be considered for temporarily housing crew members and others during extended filming schedules.
Existing fort structures that could be adapted for reuse by Netflix in Phase 2 include Vail Hall, and the “Artist Barracks” (so named as they were slated to become an artists’ community before the property was incorporated into the Mega Parcel), both along Route 537, and portions of the “400 area” along Oceanport Avenue.
Netflix is currently negotiating with FMERA and Monmouth County to vacate and transfer the northern portion of Wilson Avenue along Route 537 (Avenue of Memories through the fort), currently owned by the county. The portion of Wilson Avenue south of Avenue of Memories is owned by FMERA. The transfer of Wilson Avenue “has become a critical component of studio operations and for maximizing the site’s highest and best use for the project,” officials said.
“The second amendment to the Mega Parcel PSARA unanimously approved at the Sept. 20 meeting clarifies that should Monmouth County, FMERA and Netflix not reach an agreement on the vacation of Wilson Avenue prior to start of the approval period, Netflix may terminate the agreement and receive back its second deposit,” Kopach said. “FMERA, Monmouth County and Netflix remain committed to finalizing an agreement as soon as possible so Netflix may incorporate the vacated roadway into its site and create a cohesive campus beginning at Route 35 through the existing McAfee parcel.”
Within two years of closing, Netflix is obligated to demolish all existing Mega Parcel buildings not being reused and preserve Greely Field and Cowan Park inside the Oceanport Avenue gates as deed-restricted publicly accessible open space. Greely Field’s World War II memorial and the flagpole and plaque in Cowan Park must be preserved and maintained and “not be disturbed.” Netflix is also obligated to construct and improve its portions of the fort’s trail system and sidewalk.
The construction phase is expected to generate a maximum of 3,528 full-time jobs. Thereafter, the job number attributable to production is set at 1,407 jobs within 24 months of the issuance of the Certificate of Completion of Phase 1, and an additional 128 jobs within 12 months of the issuance of the Certificate of Completion of Phase 2. Netflix must pay a penalty of $1,500 for each job not created within the timelines established in the PSARA, a standard FMERA regulation. The company plans to offer training programs for electricians, stage operation, grips, set design, and more, the spokesperson said.
FMERA officials said the fort’s redevelopment “continues moving forward with new homes, businesses, and amenities coming online on a rolling basis.” About 86 percent of the fort’s 1,126 acres are sold, under contract, in negotiations, or entering the request for proposals process. To date, FMERA has sold 34 parcels, with six more under contract or having board-approved contracts.
The article originally appeared in the September 28 – October 4, 2023 print edition of The Two River Times.
