Netflix is buying a former New Jersey Army base to create one of the largest production facilities in the world.
On Wednesday, the Fort Monmouth Economic Revitalization Authority (FMERA) voted to enter into a sales contract with the streaming giant to buy Fort Monmouth's Mega Parcel for $55 million. FMERA is the state agency in charge of redeveloping Fort Monmouth, which was shuttered by the U.S. Army in 2011.
Netflix said it will invest upwards of $850 million to build a state-of-art production facility– one with 12 sound stages, ancillary production spaces and back lots, similar in size and scope to its New Mexico studios – to produce TV series and films, including originals. Production will also occasionally go on location at scenic backdrops around the state.
"This will be a key focal point for us and it will be our East Coast production hub," said Rajiv Dalal, Netflix's director of content & studio affairs.
Netflix's economic impact
Netflix estimates it will generate between $7.4 billion and $8.9 billion in output over the next 20 years for production and construction. The value added to New Jersey’s economy as a direct result of that activity during that same period would be between $3.8 billion and $4.6 billion, it estimates.
During peak construction, Netflix estimates the project will contribute as many as 3,500 jobs. Once the studio is fully operational, it estimates that Netflix production could contribute between 1,400 and 2,200 jobs annually.
In addition, Netflix expects there to be a considerable ripple effect as the production hub could spark private sector capital investment into adjacent industry infrastructure and businesses, including post-production and other digital facilities and services.