By Laura D.C. Kolnoski
EATONTOWN – As the borough council moves closer to approving a 30-year Payment in Lieu of Taxes (PILOT) arrangement with Netflix Studios Fort Monmouth, Eatontown officials are contemplating local projects the initial payments could fund.
“My support has to do with minimizing risk,” said Mayor Anthony Talerico Jr. at the start of a two-hour public workshop session Oct. 8. “Eatontown should enter into the agreement to help the taxpayer wherever necessary. We will look at all the different options to determine what is best for the taxpayer.”
Council members voted 5-0 with one abstention that night to introduce an ordinance for the PILOT plan. A final public hearing and vote are scheduled for Oct. 22.
Prior to the vote, several residents spoke, primarily requesting specifics on how PILOT funds can and cannot be used. Council member Maria Escalante’s reason for abstaining was wanting more time for review. She asked several questions of financial advisors during the meeting and said she had more from constituents.
Talerico, who repeatedly urged residents to present their questions, only votes in the event of a tie.
Talerico explained that the PILOT would provide an upfront payment of $47 million, paid in December, that can be used for infrastructure in the borough. Additionally, the borough would receive annual payments over 30 years. A portion of those payments, $28,876,517, is in the form of land taxes and would be allocated to all taxing jurisdictions each year. This is a matter of law and payments to those jurisdictions are guaranteed, including to the schools, he noted. A second portion of the annual payment stream totals $49,540,783. That amount goes to the borough. Though not required to share these revenues, the governing body has already stated publicly its desire to enter meaningful discussion with the board of education to share with the school system, he said.
“I am very pleased with this financial arrangement as it provides upfront funds for needed infrastructure items and also provides strong annual payments to help the annual municipal budget,” the mayor said.
Officials in Eatontown and Oceanport, the two towns the production complex will span, have said Netflix is striving to close on the 292-plus-acre property by the end of this year upon receipt of all local, county and state approvals.
Intended to spur invest- ment in areas in need of redevelopment, a PILOT is a contractual agreement in which a developer makes annual payments to a mu- nicipality rather than paying standard property taxes.
Fort Monmouth, closed by the U.S. Army in 2011 after almost 100 years of continuous operation, has been undergoing redevelopment since.
While the fort’s 1,126 acres include parts of Eatontown, Oceanport and Tinton Falls, Netflix Studios Fort Monmouth will occupy portions of Eatontown and Oceanport only, roughly from Route 35 to Oceanport Avenue, and across Oceanpor t Avenue in Oceanpor t’s waterfront Gooseneck neighborhood.
The studio complex will be built in phases, with four soundstages, a mill, a backlot and support structures in Oceanpor t first, followed by eight soundstages and similar buildings on a larger tract in Eatontown. While Netflix has not yet closed on the site with the Fort Monmouth Economic Revitalization Authority, the entertainment firm obtained special permission to begin the current demolition happening throughout the property.
The day after the Oct. 8 meeting, Talerico posted a message to residents on social media stating, in part, “While we are required to use the $47 million for at least one redevelopment project in at least one redevelopment area, we can also use funds to do infrastructure projects outside of a redevelopment area. From roads and sewer repairs to park improvements, equipment purchases, and a host of other uses, the borough can use these funds to repair and enhance our public infrastructure.”
He continued: “If Netflix were to leave, we keep all the funds. That is a great deal. If Netflix were to close, the new buyer would still be responsible for the payments and Netflix would be responsible during the transition. This is a financial homerun for Eatontown and will begin an opportunity for the town we have never seen before.” He cited “the deplorable condition of the downtown” as a priority.
“If we were to tax Netflix according to regular straight taxation, if/when they leave or reduce their footprint, the borough would be faced with a tremendous budget shortfall to replace the taxes they generated,” Talerico wrote. “During this time, the rest of the taxpayers would be left picking up the difference. That is unacceptable.”
Matthew Jessup, Eatontown’s redevelopment attorney, said the PILOT “accelerates payments and allows Eatontown and its residents to benefit immediately.” He said the state restricts a municipality’s PILOT investments as “the state doesn’t want funds invested in risky assets.”
“Experiencing the downfall of Monmouth Mall, and the tax consequences we found ourselves in, it would be foolish for the council to support traditional taxation on the Netflix project,” Talerico wrote in his post, adding that details have been under discussion with Netflix for about a year. “The PILOT option is virtually eliminating all risk and is producing an enormous financial benefit to the borough.”
Regarding usage of local emergency services, the mayor said Netflix has decided Monmouth County Medstar will provide EMS services for the studio complex, which will be the company’s largest after New Mexico. Netflix “will have their own sophisticated onsite security,” he noted, adding, “The agreement for fire services is still not finalized, but the council has already stated that we will not subsidize Netflix operations.” The studios will contract with private trash pickup services.
To enhance communication between the borough and its residents regarding local improvement projects, upgrades will be made to the borough website, eatontownnj.com, and social media, and the possibility of hiring public relations professionals is now being explored.
Netflix will pay $55 million for the proper ty and expects to invest at least $900 million in the complex. The media giant was lured to the fort partly due to enhanced economic incentives and tax credits offered by the state under Gov. Phil Murphy and the New Jersey Economic Development Authority, created with bipartisan support.
The article originally appeared in the October 16 – October 22, 2025 print edition of The Two River Times.
