Netflix Studio Deal Brings $65 Million Boost to Small Jersey Shore Borough

Netflix pays Oceanport, New Jersey $65 million over 30 years, ushering in a new era in the peaceful seaside town. This deal involves massively redeveloping Fort Monmouth, a former Army base.

Fort Monmouth’s McAfee Zone will host Netflix’s 29-acre futuristic production campus. To secure a steady revenue stream for a town of 6,000, the borough council unanimously approved a Netflix payment-in-lieu-of-taxes (PILOT) agreement to replace property taxes with fixed annual payments.

Netflix will pay Oceanport $64.8 million over 30 years under the PILOT structure, including an administrative fee. Even if Netflix sells the property, the agreement guarantees borough payments. The borough mayor said the deal secures long-term funding for local services and infrastructure.

Netflix plans a large campus. McAfee Center renovations will include soundstages, warehouses, and production offices. When operations begin, construction and full-time studio jobs will exist. The new studio will open in 2028 after construction next year.

Because they bypass property taxes, most PILOT payments go to the borough, not schools or counties. PILOT revenues will be shared with the local school district through a separate annual funding agreement, say Oceanport officials. The payment plan relieves taxpayers without raising the budget by paying down the school district’s referendum debt with $1 million per year.

Netflix signed a 30-year PILOT deal for the second phase of the studio project in Eatontown, New Jersey. The immediate $47 million payment will fund overdue road, sewer, and public facility improvements, officials say. The shore region will be transformed by Netflix’s $1 billion private investment, $400 million of which is in Oceanport.

This agreement proves that small Jersey Shore communities can attract large creative industry investment and turn military installations into economic engines. Oceanport can use the deal to reinvent itself, create jobs, fund vital infrastructure, and retain its small-town charm while one of the world’s largest streaming companies moves in.

Sources

Associated Press