By Laura D.C. Kolnoski
FORT MONMOUTH – Netflix and the Fort Monmouth Economic Revitalization Authority (FMERA) confirmed yesterday that the entertainment firm is the top bidder for the 292-acre Fort Monmouth Mega Parcel spanning portions of Eatontown and Oceanport, with the intention of constructing a production facility. Many steps remain before a sale is finalized.
“FMERA can confirm that it has identified and contacted the highest scoring proposer for the Mega Parcel,” wrote Sarah Giberson, the agency’s senior marketing and real estate development officer, in a statement yesterday morning. “However, FMERA will make no further representations relative to the potential purchase of property until such time as the staff is prepared to recommend the approval of a fully negotiated Purchase and Sale Agreement and Redevelopment Agreement to the FMERA board. This process may take several months, and no recommendation has been made to date.”
“While there is still work to be done with the (New Jersey) Economic Development Authority and local leadership to finalize the deal, we are thrilled that FMERA’s preferred choice for the Fort Monmouth development project is our proposal for a state-of-the-art production complex,” wrote a Netflix spokesperson in a statement sent to The Two River Times. “This is a key step, but the deal is not final. The next few months include a due diligence period, an examining of the fort and finalizing economic terms. If the deal becomes finalized in the next few months, with a signed sale agreement, there is then an additional period of due diligence along with various state, county, and local approvals. If our plans are approved, we hope to build a facility that will create significant economic impact and job growth for New Jersey, a state loaded with creative talent and technical expertise.”
Citing two unnamed sources, the New York Times was the first to report the emergence of Netflix as the top scoring bidder early yesterday, characterizing Netflix as “inching closer” to building a production studio on the 1,126-acre former U.S. Army base. The Two River Times first revealed Netflix’s interest in the property in July 2021.
Following its standard legal process, FMERA officials hoped to keep the bid evaluation, scoring and negotiating processes secret until the top ranked bidder is formally recommended to FMERA voting members, expected within weeks. FMERA includes representatives of several state agencies, the mayors of Eatontown, Oceanport and Tinton Falls, Monmouth County Commissioner Lillian G. Burry, and administrative and support staff. For the Mega Parcel, the Army is also involved, as it still retains a financial interest in a portion of the site.
Bids were submitted June 6 by Netflix, Extell Acquisitions LLC; Mega Parcel Development LLC; and RDR Partners, LLC, comprised of Russo Development, LLC, Dinallo Development, LLC, and River Development Equities, LLC. All bids were required to abide by rules and parameters in the parcel’s 120-page Request for Offers to Purchase, which envisioned a wide array of uses including information and technology, food and beverage, and film and digital media uses.
It was also announced yesterday that Russo Development and Dinallo Development LLC/Terminal Construction, along with Onyx Equities, have been selected for a major transit-oriented development project at Metropark Station in Woodbridge.
The Mega Parcel, appraised at $54 million, encompasses numerous structures of varying sizes, many in deteriorated condition, which must be demolished or adaptively reused. The purchase price proposed by Netflix was not disclosed as of press time.
During the critical due diligence period, Netflix will bring in environmental experts and engineers to examine the site. If that stage is successfully completed, Netflix would go before the planning boards and governing bodies of Eatontown and Oceanport for any needed variances and approvals. FMERA officials have said if all conditions are met and Netflix chooses to proceed, the start of construction could be two to four years away.
Gov. Phil Murphy, instrumental in luring film and entertainment companies to New Jersey, told the New York Times he was “thrilled” that Netflix has been chosen top bidder. A request for further comment from the governor was not answered by press time.
“FMERA remains excited about the future of the Mega Parcel and is eager to see the inevitable economic impact that will result from its future redevelopment,” Giberson’s statement continued. “Additional information and updates regarding the Mega Parcel will be provided via FMERA’s public board meetings.”
The next FMERA meeting, held in the fort’s former library off Route 537, has been rescheduled from Oct. 19 to Nov. 2.
The article originally appeared in the October 13 – 19, 2022 print edition of The Two River Times.
