By Laura D.C. Kolnoski
RED BANK – Four months after The Two River Times broke the news that Gov. Phil Murphy’s outreach to major film production studios resulted in interest from Netflix, the entertainment company confirmed its intentions.
In an article that appeared on The New York Times website late Tuesday, the paper stated, “Speculation about Netflix’s interest in Fort Monmouth has swirled since July, when The Two River Times reported that Netflix had been in contact with Mr. Murphy’s office about building opportunities” and included a link to the original July 29 article. Within minutes, a Netflix spokesperson reached out to The Two River Times via email to inform editors and the reporter of the NYT article.
“America’s first movie studio was in New Jersey, and today it’s home to many talented people working in entertainment,” Netflix included in a statement. “Governor Murphy and the state’s legislative leaders have created a business environment that’s welcomed film and television production back to the state, and we’re excited to submit our bid to transform Fort Monmouth into a state-of-the-art production facility.” Network news shows carried the story early Wednesday morning.
The governor’s office shared the following statement from Murphy, also given to the NYT: “I am incredibly excited to hear about Netflix’s proposed investment in New Jersey. While there is an objective process that any and all applications must 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. New Jersey has become a leader in new, innovative industries from offshore wind to sports betting to film and digital media, and today’s announcement by Netflix is another sign that companies around the world are taking notice.”
Approximately 5,000 civilian jobs were lost when the fort closed. About 15,000 military personnel were stationed there. Area businesses suffered or closed altogether. Over the past decade, many jobs have been created through redevelopments already completed and new businesses have opened nearby.
Redevelopments already operating include Trinity Hall School, CommVault, a Monmouth County Recreation Center and Public Works facility, the Marina at Oceanport restaurant, The Fort Athletic Club, a New Jersey City University campus, AcuteCare, TetherView, Aaski Technologies, and the East Gate residential development in renovated historic Officers Housing. Oceanport has moved its municipal operations onto the base, and Eatontown is relocating its Public Works Department nearby.
Netflix is bidding on a 289-acre portion of the 1,126-acre former U.S. Army base, known as the Mega Parcel, through an open bid process announced Oct. 15. While the fort spans portions of Eatontown, Oceanport and Tinton Falls, the Mega Parcel only includes sections in Eatontown and Oceanport.
The federal government shuttered the fort in 2011 as part of a national realignment of military bases aimed at cutting costs. Since, the Fort Monmouth Economic Revitalization Authority (FMERA) comprised of state, county and local officials supported by an experienced professional staff have been marketing, selling and guiding the redevelopment of the site parcel by parcel. To date, 80 percent of the fort has already been sold, is under contract, or in other phases of the process. The Mega Parcel, which combines properties of varying acreages not previously offered for sale or sold, comprises about 20 percent of the fort’s acreage.
The Mega Parcel has been appraised at $54 million. Netflix has not disclosed the amount it plans to offer. FMERA officials confirmed additional interest in the site and expects multiple bidders.
Bids are due to FMERA offices in the fort’s former library Jan. 12. The bid process is guided by strict rules that include not disclosing names of bidders until an evaluation process is completed, the bidders ranked based on established criteria, and the top scorer presented to the larger voting board, which includes the mayors of the three municipalities. Among those overseeing the process are the State Attorney General’s Office, the New Jersey Economic Development Authority and the Department of Environmental Protection.
The approved bidder then undertakes a “due diligence” period during which the site is fully examined by engineers and other experts. That process has been impacted, and often delayed, by the pandemic. If the developer opts to proceed, a Purchase, Sale and Redevelopment Agreement is created including precise requirements which must be adhered to by the purchaser. A Certificate of Completion is not issued by FMERA until every item is checked off the list post-construction. Approvals by the municipalities’ planning boards and governing bodies are also part of the process. FMERA officials have estimated start of construction could be two to four years away.
“The devil will be in the details,” Oceanport Mayor Jay Coffey told The Two River Times in August. “Until we see what the bid documents hold in store, I’m reserving judgment, but am excited about this type of development.”
“Netflix’s interest in New Jersey is an exciting development (for the county and state),” said Michele Siekerka, president and CEO of the New Jersey Business & Industry Association in a statement given to The Two River Times by Netflix. “Reimagining Fort Monmouth as a production facility for the streaming industry leader would help revitalize the local economy and build a brand-new ecosystem in the state for the film and television industry. This project will bring thousands of good jobs, exciting opportunities for new workforce development programming, and a flurry of economic activity that will truly transform the surrounding area and the region.”
During its Oct. 20 meeting, Sarah Giberson, FMERA’s marketing and development manager, cautioned potential bidders that noon Jan. 12, 2022, “is a strict deadline” for submission of Mega Parcel proposals. Consideration should be given, she added, to time required for services like Federal Express and United Parcel Service to deliver bids to FMERA.
The article originally appeared in the October 28 – November 3, 2021 print edition of The Two River Times.
