Netflix’s $47M Deal Could Transform Eatontown With Massive Studio Project
Netflix’s $903 million plan to create a cutting-edge production studio at Fort Monmouth could help Eatontown’s economy in the first phase. The streaming behemoth is offering the town a $47 million payoff and decades of revenue under a proposed Payment in Lieu of Taxes (PILOT) arrangement.
The Eatontown planning board approved the final and largest phase of the mammoth project, which would form the 289-acre campus’s center. This milestone allows Netflix to seal its agreement with the borough and start turning the Army installation into a Hollywood-style studio center.
Mayor Anthony Talerico said Netflix’s PILOT proposal would give the borough annual payments for 30 years instead of property taxes on studio buildings. The mayor said the upfront $47 million may be utilized to repair and modernize municipal infrastructure including roads, sewerage, and public facilities, addressing long-standing town needs. He highlighted that Eatontown would gain from Netflix’s investment and attention even if they left the property.
Besides the upfront cost, Netflix will pay property taxes on the land during demolition and construction. Company taxes are expected to be $550,000 next year and $566,500 in 2027. Land taxes and PILOT payments are likely to reach $1 million annually in Eatontown once the studio opens, with payments increasing during the 30-year deal.
The borough council and state’s Local Finance Board must approve the contract, which Eatontown’s council will consider on October 8. It would be one of the borough’s biggest financial deals if allowed.
Residents have complained about the PILOT system because most of the funding goes to the municipality rather than the schools, county, and town. This has raised concerns about whether the pact will increase residential tax burdens. Mayor Talerico supported the partnership, stating that Netflix’s contributions will outweigh any negatives.
Deconstruction at Fort Monmouth began earlier this year, with studio construction slated in 2026 and full operations in 2028. The huge facility will have 12 soundstages, production offices, retail areas, and a community hub, making New Jersey a film and television powerhouse.
Netflix received up to $150 million from New Jersey’s Film and Digital Media Tax Credit program and $387 million from the state’s Aspire program in addition to the local PILOT deal. Netflix will run the New Jersey studio for at least 10 years in exchange.
The project may earn $3.8 billion to $4.6 billion for New Jersey over 20 years, according to economists. The $47 million payment is the start of Eatontown’s long-term development fuelled by one of the state’s greatest entertainment expenditures.
Sources
Statements from Eatontown Mayor Anthony Talerico
New Jersey Economic Development Authority data
