By Laura D.C. Kolnoski
FORT MONMOUTH – A hotel, helipad, attractions, a visitor center and retail components are all allowed on the 292-acre Mega Parcel on track to become Netflix Studios Fort Monmouth.
Those details and more are included in the six-page Purchase & Sale and Redevelopment Agreement (PSARA) prepared by Fort Monmouth Economic Revitalization Authority (FMERA) staff and presented to voting members Dec. 21, 2022. That body voted unanimously to accept the entertainment firm as the top bidder for the property spanning portions of Eatontown and Oceanport.
Netflix intends to build, in two phases, a state-of-the-art film studio campus with 12 soundstages ranging in size from 15,000 square feet to 40,000 square feet with a maximum interior height of 50 feet and a maximum exterior height of 70 feet.
Additional allowable uses include, but are not limited to: production support, service, and office buildings; a commissary/cafeteria; basecamp with trailer parking; a helipad; swim tank(s) for film production; consumer experience centers and/or attractions; retail components including food and beverage facilities; a theater; a visitor center; a hotel; wind or small solar systems; and rooftop solar.
As part of Phase 1, Netflix will preserve Greely Field and Cowan Park, inside the Oceanport Avenue gates within the 100-year-old fort’s Historic District. The company must “preserve, repair, and maintain” the World War II memorial at Greely Field and the flagpole and plaque in Cowan Park.
Existing buildings slated for renovation and/or reuse may include Mallette Hall, the McAfee Center, the Expo Theater, Vail Hall, the barracks along Route 537 initially intended for an artists’ community, structures in the 400 area, and the fort’s former library, currently used as offices for FMERA and employees of the New Jersey Economic Development Authority. Netflix must demolish all existing buildings not identified for reuse, and will construct or improve the trail system and sidewalk applicable to each phase.
The consumer and “attractions” aspects are included in Phase 2. A Netflix spokesperson told The Two River Times Tuesday that potential uses in the PSARA are possible, and must be spelled out in advance, but their inclusion does not mean they will become reality. Immediate plans for consumer experiences include public screenings of Netflix shows and movies.
Netflix does not currently offer consumer events at its other studios. At its New Mexico and Canada studios, the firm recently launched a “Netflix in Your Neighborhood” website where fans can find filming locations for popular programs. Other interactive consumer experiences have included “The Queen’s Ball: A Bridgerton Experience” and “Stranger Things: The Experience.”
The spokesperson said there are no current plans to build a hotel but included it as a potential future use aimed at temporarily housing crews and others in case of inclement weather or extended filming schedules. At least one other hotel is allowed at other Fort Monmouth redevelopments. A visitors’ center could include a welcome area for the public, the spokesperson said.
Fort Monmouth once had a working helicopter pad and Netflix will explore having one with limited flights, the spokesperson said. If that happens, the company would work with local authorities to share it with the community for emergency purposes.
The spokesperson stressed Netflix believes Fort Monmouth is an ideal location due to the multiplicity of scenic backdrops throughout New Jersey, the entertainment industry professionals already here, and the size of the parcel that will allow construction of a major East Coast production hub.
Netflix has four years from the date of the initial closing to complete Phase 1, and seven years from that date to complete Phase 2, with extensions available for both phases. Netflix officials said last month they hope to commence operations in 2027.
While FMERA sets timelines with extensions for all projects, weather, labor, lengthy approval processes and supply issues that caused delays pre-pandemic were only exacerbated by it. Additionally, FMERA must sign off on a checklist of the purchasers’ final obligations before any project is deemed finalized.
Netflix will next undertake the standard due diligence period of testing, inspections and reviews for 90 days, which can be extended for two additional 30-day periods. The company must then apply for and “diligently pursue” required local, county and state approvals during a 36-month period and provide a final conceptual site plan within 45 days of the expiration of the due diligence period.
Netflix has projected maximum employment during the construction phase at 3,528 full-time jobs. Thereafter, a total of 1,407 jobs are projected to be created within 24 months of the issuance of the Certificate of Completion of Phase 1, and an additional total of 128 jobs within 12 months of the issuance of the Certificate of Completion of Phase 2. As with all fort redevelopments, Netflix must pay a penalty of $1,500 for each job not created. The company plans to offer workforce training programs for electricians, stage operation, grips, set design, production accountants and more.
The purchase price for the Mega Parcel is $55 million, the previously appraised value. With an investment of $850 million, hopes are the facility will spur more investment in equipment, facilities and services, generating additional jobs.
“When the fort shut down, jobs disappeared, families moved away, and an empty Fort Monmouth served as a constant reminder of what we lost,” said Jay Coffey, Oceanport mayor. “What has transpired over the past six years or so… has been nothing short of remarkable. Netflix’s arrival allows for an incredibly advantageous and creative re-use of this property and will serve to restore a great deal of economic vitality and social energy to Oceanport and Monmouth County at large.”
More Bid Details Emerge
In addition to Netflix, three entities submitted bid proposals for the Mega Parcel June 6, 2022: Extell Acquisitions LLC, Mega Parcel Development LLC, and RDR Partners LLC. Proposals were scored by professional FMERA staff under the auspices of the NJ EDA and state Attorney General’s Office.
Extell withdrew its proposal in October. Mega Parcel Development LLC was deemed noncompliant regarding mandatory historic requirements. FMERA staff noted the developer proposed housing on Greely Field with water features, along with relocating existing historic monuments.
“The relocation of historic monuments is strictly prohibited and permanent improvements to Greely Field, which is slated as deed restricted open space within the historic district, would not be permitted,” FMERA staff noted. Furthermore, the proposal included development in areas designated as landfills. The U.S. Army is responsible for remediation of landfills and other environmental matters in perpetuity.
Netflix received a score of 5,080. RDR Partners, LLC, comprised of Russo Development LLC, Dinallo Development LLC, and River Development Equities LLC, received a score of 4,240. On the same day Netflix announced it was the top scoring bidder for the Mega Parcel, it was announced that Russo Development and Dinallo Development LLC/Terminal Constructions, along with Onyx Equities, were selected for a major redevelopment project at the Metropark Train Station in Woodbridge.
“This has been an incredible year for the fort’s reuse and redevelopment,” said Kara Kopach, FMERA executive director Dec. 21.
“We have witnessed a widescale transformation for many of our projects (and) are optimistic the community will continue to see the evolution of this redevelopment as planned projects come online and offer additional residential and commercial opportunities.” Kopach noted that over 25 functionally obsolete buildings have been demolished, 34 parcels sold, and 1,587 jobs created “with thousands more in the pipeline.” She added $1.1 billion in capital has been invested with an additional $1 billion projected. Currently, 485 homes are occupied with 639 new homes under construction.
“FMERA has penalties in all agreements for failure to perform, for not creating jobs and regarding construction aspects,” Kopach said. “FMERA doesn’t incentivize, we penalize. All parties have realized that for this base redevelopment to be successful, we must work together to overcome obstacles while recognizing the fort’s potential to be an economic driver for decades to come.”
The article originally appeared in the January 5 – 11, 2022 print edition of The Two River Times.
