State tax breaks for Netflix, fort-wide demo announced
By Laura D.C. Kolnoski
FORT MONMOUTH – “The landscape of Fort Monmouth will look drastically different next year,” said Kara Kopach, executive director of the Fort Monmouth Economic Revitalization Authority (FMERA), as 2024 drew to a close. At the agency’s last meeting of the year Dec. 18, the number of buildings slated for demolition was increased to over 100 across Eatontown and Oceanport.
First Three Demolition Sites
Netflix, planning a 12-soundstage production studio on 292 of the fort’s 1,126 acres, will demolish 88 obsolete buildings and remove the debris. FMERA agreed to allow Netflix to perform the work “pre-closing,” removing over a million square feet of blight.
All Fort Monmouth redevelopment projects are subject to mandated guidelines and timelines, but officials tell The Two River Times Netflix is working at an accelerated pace. The firm’s contractor has cleared out historic Vail Hall on the Avenue of Memories (Route 537), which it plans to reuse. In the past two months, both towns’ planning boards approved the firm’s Phase I plans for its first four soundstages on 39 acres during meetings attended by numerous Netflix representatives.
The entertainment giant has begun planning its next phase of construction and is expected to present plans for the final eight stages in Eatontown to that borough’s planning board this summer.
“Significant administrative work remains,” said FMERA director of Real Estate Development & Marketing Sarah Giberson. Netflix is currently navigating a mandated 36-month local, county and state approval process for Phase 1. While buildout was originally projected for seven to 10 years after closing, a Dec. 20 press release from the New Jersey Economic Development Authority (NJEDA) states completion is now targeted for 2028. Closing is at least a year away.
The studio campus will be over 1 million square feet and include a backlot area, an office building, a mill and support facilities surrounded by a secure perimeter wall.
Over a decade of redevelopment, the norm for most fort projects is months – or years – of delays for myriad reasons. Some developers withdrew or were disqualified. Those experiences have created cautious optimism among involved parties until final contracts are signed. With multiple aspects in motion and Netflix vigorously moving forward, officials are expressing increasing confidence the project will progress “from renderings to reality.”
In Eatontown along Pinebrook and Hope roads, homebuilder Lennar Corporation will soon begin removing 486 deteriorating Howard Commons former military townhomes for Liberty Pointe, a new mixed-use development.
After failed attempts by other developers, Lennar contracted to purchase the 60-acre site in 2021. Closing is expected this year. In addition to 275 residences, including single-family dwellings, townhomes and 20 affordable rental units, a gas station and convenience store will be constructed.
Also in Eatontown, near the former football field and Commissary, (now home to Baseline Social sports bar and Birdsmouth Brewery), five more buildings will be removed by FMERA. The site is targeted for utility and infrastructure improvements and/or blight removal.
Kopach explained that while FMERA still owns that property, it is now referred to as the “Eatontown Housing Parcel” and will be put out for public bid. A minimum of 62 affordable housing units will be constructed there, relocated from the “Mega Parcel” being purchased by Netflix.
The project’s estimated cost is $1,645,795. By law, FMERA must reinvest profits from sold properties into the fort’s redevelopment. Oceanport’s engineering firm, Colliers Engineering and Design of Holmdel, will perform the work. It will include bidding services for abatement and demolition contracts, oversight and completion of asbestos removal from the interior and exterior of the buildings, abatement monitoring and reporting, and post-abatement review.
Colliers will also be responsible for the proper disposal of wastes and hazardous materials, related services, and final restoration of the site with grading, top soiling, and seeding.
State Approves Netflix ‘Aspire’ Tax Credits
Calling Netflix Studios Fort Monmouth “a transformative project,” the NJEDA, which oversees FMERA, announced the company was approved for an Aspire award not to exceed $387 million.
The NJEDA describes Aspire as “an economic development program created in 2020 to support mixed-use, transit-oriented development with tax credits to commercial and residential real estate development projects that have financing gaps.” It is performance-based, meaning projects must certify all commitments have been met before receiving the first disbursement of tax credits.
Last year, the NJEDA designated Netflix as a “Studio Partner,” allowing the company to access expanded benefits under the state’s Film and Digital Media Tax Credit program. Under the agreement, Netflix must occupy a New Jersey film production facility for at least 10 years and is potentially eligible for a 40% base tax credit for qualified production expenses on future state film projects.
“With Netflix leading the way, the creation of new, world-class studios has solidified New Jersey’s standing as a national leader in film and television production,” said Gov. Phil Murphy. “(This) will help create thousands of good-paying jobs, support small businesses and vendors, and stimulate the regional economy.”
“We are grateful to receive support from Governor Murphy, local officials in Oceanport and Eatontown, and the NJEDA to help build Netflix Studios at Fort Monmouth,” said Ted Sarandos, co-CEO of Netflix, adding its second largest projection studios after New Mexico “will catalyze job creation and economic growth, contributing to a vibrant production ecosystem in New Jersey.”
“For several generations, Oceanport’s identity was tied to Fort Monmouth and Monmouth Park Racetrack,” added Oceanport Mayor Tom Tvrdik. “Thanks to the hard work, meticulous planning and visionary land use projections of the NJEDA and FMERA, Oceanport’s identity for generations to come will be tied to Monmouth Park Racetrack and Netflix. That (the area) will serve as the East Coast hub of the world’s pre-eminent and most recognized creator of entertainment… is nothing short of remarkable.”
As FMERA’s Dec. 18 meeting concluded, Eatontown Mayor Anthony Talerico commented, “A lot of people will be taking credit for the work FMERA has done, but we know who really did the work.”
The article originally appeared in the January 2 – 8, 2025 print edition of The Two River Times.
