Netflix has officially placed a bid for a 289-acre portion of Fort Monmouth, a former Army base located in New Jersey.
The property, dubbed the Mega Parcel, is located in the boroughs of Eatontown and Oceanport and has been appraised for $54 million by the Fort Monmouth Economic Revitalization Authority (FMERA). Proposals were due by Monday at 12:00 p.m.
In addition to Netflix, three other firms have submitted bids: Extell Acquisitions LLC, Mega Parcel Development LLC and RDR Partners LLC. Both FMERA and Netflix declined to provide additional information on the bid.
FMERA will now begin its review of the submitted proposals, which will be based on criteria including each proposed project's estimated job creation, capital investment and positive economic impact to both the municipality and the state.
"FMERA will make no representations relative to the highest scoring proposal until such time as the staff is prepared to recommend the approval of a Purchase and Sale Agreement and Redevelopment Agreement to the FMERA Board," the organization added. "Please be advised that this process may take several months."
The streaming behemoth first announced plans to submit a bid for the Mega Parcel in October. The announcement came after New Jersey Gov. Phil Murphy penned a letter to Hollywood film studios in April, including Netflix, Disney and Warner Bros., in an effort to lure them away from Georgia after the state approved a controversial voting law.
"America's first movie studio was in New Jersey, and today it's home to many talented people working in entertainment," Netflix told FOX Business at the time. "Gov. 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."
In January, Murphy signed legislation increasing the state's digital media content production tax credit to 35% of qualified expenses purchased through vendors in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, or Salem counties, or 30% of all other qualified expenses purchased within the state.
In addition, the bill increases the cumulative annual limitation on digital media content production tax credits from $10 million to $30 million. Beginning in fiscal year 2025, the bill also allows an additional $100 million in tax credits for New Jersey film-lease partners from tax credits authorized under other incentive programs.
In addition to Netflix's interest in the Garden State, Lions Gate Entertainment recently announced plans to build a $125 million production studio in Newark, New Jersey. Lionsgate's facility is expected to begin operations in late 2024, create more than 600 new long-term jobs for Newark residents and generate more than $800 million in annual economic impact for the city and state.
www.foxbusiness.com/real-estate/netflix-bid-production-studio-new-jersey-fort-monmouth
