Copyright Staten Island Advance
A massive Netflix production studio planned for the Jersey Shore could funnel nearly $65 million in tax revenue to a local town over the next three decades. Netflix recently secured final site plan approvals for both phases of its $903 million studio project at Fort Monmouth, a former U.S. Army base that spans the border of Eatontown and Oceanport near Route 35. The Oceanport Borough Council unanimously voted to introduce an ordinance earlier this month to establish a payment-in-lieu-of-taxes program, known as a PILOT, with Netflix. Under the financial agreement, which applies only to the first phase of the project, Netflix is expected to pay about $64.8 million to Oceanport over 30 years through the PILOT. When an administrative fee is added, the total rises to roughly $66 million. PILOT programs allow developers to make negotiated payments directly to a town instead of paying traditional property taxes. The programs are used to provide a tax break in exchange for building locally. Oceanport Mayor Thomas J. Tvrdik recommended the deal, saying it gives the 6,000-resident borough a steady and reliable stream of tax revenue. The town is guaranteed fixed payments from Netflix each year, even if the company decides to sell the property later, officials said. A public hearing and final vote on the PILOT agreement is scheduled for Dec. 4. Final site plans for phase one of Netflix’s studio project, located on a 29-acre tract in Oceanport known as the McAfee Zone, were approved in November 2024 by the council. The McAfee Zone, built in 1977, once played a key role in military communications and technology. The site currently includes the 90,000-square-foot McAfee Center, along with 15 additional buildings, a warehouse and office spaces. Netflix plans to transform the complex into a campus for actors and production crews. It will include two 22,000-square-foot soundstages and another set of twin soundstages totaling 83,555 square feet, according to final site plans. The former McAfee Center will be repurposed into studio business and production support offices. A warehouse and mill building will also be added. Unlike traditional property taxes, which are divided among schools, the county and the municipality, most PILOT revenue goes directly to the borough. While schools don’t receive PILOT funds under state law, Oceanport officials said the borough plans to share part of the revenue through an annual shared-services agreement with the local board of education. About $1 million each year would go toward paying down the district’s $33 million referendum debt, easing the burden on local taxpayers without increasing the school district’s overall budget, officials said at the meeting. Oceanport’s first PILOT payment is expected in 2027. Netflix also plans to provide an additional $3 million in community benefits funding through its agreement with the Aspire program, a state tax credit program, according to meeting documents. Last month, neighboring Eatontown approved a similar 30-year PILOT agreement with Netflix for the second phase of the studio project. The deal includes an immediate $47 million payment that borough officials said could be used for long-needed improvements to roads, sewers and public facilities. Demolition at Fort Monmouth began in May, and construction is expected to start next year. Netflix’s studio is expected to create about 6,277 construction jobs and 2,390 permanent jobs once it opens in 2028. The total private investment is estimated at $1.1 billion, including $400 million in Oceanport, according to the borough.
