New Jersey Expands Scope of Programs to Draw Productions as More Soundstages Break Ground

As a long-time resident of New Jersey, I am absolutely thrilled about the announcement of Netflix setting up a production facility on the former Fort Monmouth campus. This is a game-changer for our state, and I couldn’t be prouder!

For the past six years, New Jersey has emerged as a leading location for filming movies, TV shows, and more recently, reality programs.

The Film and Digital Media Tax Credit Program was reinstated by Gov. Phil Murphy at the end of 2018 after being on hold since 2010. Under his administration, the program initially allowed for a maximum yearly investment of $75 million in film and television production. Qualifying expenses could earn productions credits up to 30%, with productions in more rural parts of New Jersey eligible for up to 35%. As of now, the tax credit has grown to a yearly limit of $430 million from 2019 to 2039. In an attempt to foster a diverse workforce, additional incentives (either 2% or 4%) are being offered to productions that meet specific diversity standards.

Murphy says that reinstating the state’s film tax incentive was a no brainer.

Murphy states that New Jersey is ideally suited for the film industry, citing its rich history as the birthplace of cinema, with Thomas Edison’s laboratory in West Orange being the site where the kinetograph and kinetoscope were developed. He emphasizes that our state has an abundance of talent, a strategic location, and is a large union state – there are numerous reasons to support this claim. Additionally, he highlights that the film industry can have a rapid and substantial economic impact on the communities where production takes place.

Over the past five years, I’ve been absolutely thrilled to witness the significant impact of film production in New Jersey. Since 2018 alone, this vibrant state has accumulated a staggering $2.4 billion in qualified spend from filmmaking. Fast forward to 2023, and that number for the year was a still impressive $592 million.

Beginning in 2021, this state has played host to more than 1,891 different productions, which include 223 feature films, 43 miniseries, and 331 television series. At present, there are 70 active production stages within the state.

Movies such as “West Side Story” directed by Steven Spielberg, “Oppenheimer” by Christopher Nolan, and “Joker” from Todd Phillips have utilized New Jersey’s stages and locations in their production. Recently, the Cape May area was chosen for filming “A Complete Unknown,” an upcoming Bob Dylan biopic featuring Timothée Chalamet. At this year’s Toronto International Film Festival, several films shot in New Jersey will be premiered, including “Presence” by Steven Soderbergh, “Road Diary: Bruce Springsteen and the E Street Band” by Thom Zimny, and “Relay,” a thriller directed by David Mackenzie, starring Lily James and Riz Ahmed.

Mackenzie mentions that they initially desired New York, but the financial team preferred New Jersey due to its lower cost. As Mackenzie puts it, “It’s a bit of a break all over.” The filming locations included Newark airport and Riz’s apartment in Harrison. Contrary to what we had said earlier, Lily James’ apartment was actually located in Hoboken, not Battery Park City. Essentially, the production ended up using a lot of Jersey as a stand-in for New York. Similarly, some locations where the cast exit the city are also in New Jersey. So, the balance between New York and New Jersey was achieved effectively in the film.

Ever since the implementation of New Jersey’s film tax credit, many productions have chosen to stand in for the five boroughs instead. The problem of limited stage space and location shooting spots in New York City has been a long-standing one. With the four main studios – Kaufman Astoria, Silvercup, Steiner, and Broadway Stages – frequently fully booked, sometimes years in advance, it’s not surprising that developers in the tri-state area seized the opportunity presented by New Jersey’s appealing film incentive program. As a result, several production studios such as Palisades Stages, 10 Basin Studios, and Cinelease Caven Point have sprung up in the region.

In March, Jon Crowley was appointed as the executive director of the New Jersey Motion Picture and Television Commission (NJMPTVC). Before taking on this position, he had been part of the New Jersey Economic Development Authority, which oversees the production incentives program. For over two decades, Crowley had worked in the television industry, where he directed and produced several TV shows. Now, in his new role, Crowley frequently travels globally to promote the advantages of utilizing New Jersey’s soundstages and diverse shooting locations.

Crowley remarks, “New Jersey offers a wider range of locations than you find in Los Angeles. Whether you prefer bustling cities or quiet towns, we’ve got both. Fancy a beach or a snow-capped mountain? We can provide that too. What makes it even better is that New Jersey is geographically compact. You can travel from the beach to a snowy mountain within 90 minutes. I often joke that in Los Angeles, it takes 90 minutes just to cross town.

Over the past few years, New Jersey has frequently stood in for a variety of locations beyond just New York City. It has been used to represent Africa, Europe, the Middle East, Southeast Asia, Florida, Los Angeles, New England, Philadelphia, the Midwest, the Pacific Northwest, southern states, and even Washington, D.C.

Crowley adds that the state’s first-rate workforce has also helped attract productions.

Crowley points out that he’s directed productions in over 25 U.S. states and 22 countries, and one of his worries is finding an experienced crew when you can’t travel with your own team. Nearly 40% of skilled crews from New York reside in New Jersey, and they generally prefer the convenience of commuting a short 30 minutes to work instead of dealing with congested bridges or tunnels.

Tammy Snyder Murphy, New Jersey’s first lady, acknowledges the role of NJMPTVC’s Film Ready initiative in consistently drawing movie and TV productions to the state. This five-step certification and promotional program educates local municipalities about film production, empowering cities and towns within the state to efficiently host on-location shoots and advertise their communities as attractive filming locations.

In essence, we’re here to prepare our local communities for film productions by ensuring they are certified. This means they’re well-informed about what’s involved, such as permits and access. A few years back, we experienced the set of ‘West Side Story’, where Steven Spielberg himself admitted that during filming in New York City, there were no rules whatsoever, allowing people to casually wander onto the set… This led to reshoots and additional costs, both in terms of time and money. However, here in New Jersey, we’re thrilled and eager to host these productions, welcoming them into our communities.

It’s plausible that every resident in New Jersey could become “Prepared for Filming” within the coming years. In May, the NJED granted a $400 million tax credit known as Aspire to aid in constructing 1888 Studios, an expansive production complex comprising 23 soundstages, varying from 18,000 to 60,000 square feet, with ceilings reaching up to 40-50 feet. Positioned on a 58-acre plot of land in the Bergen Point neighborhood of Bayonne, this ambitious studio project is being led by Togus Urban Renewal, headed by Arpad Busson, a French financier based in New York, along with Rothschild from the U.K. and the Moore Group, also based in New York.

1888 Studios, once a Texaco oil refinery, is set to encompass approximately 350,000 square feet of production-related spaces, outdoor filming areas, office suites, lighting and rigging facilities, and a multi-story parking garage.

Busson stated to ROI-NJ.com in June, ‘The tax incentives indicate that New Jersey recognizes the steps necessary to establish a competitive ecosystem.’ In other words, they’re constructing an ecosystem capable of standing alongside any region.

As a film enthusiast, I’m thrilled to share that one of the three significant film production hubs making their way to New Jersey in the coming years is none other than 1888 Studios. This venture is a collaborative effort between TV and film producer Robert Halmi, Lionsgate, and the New Jersey Performing Arts Center.

In 2022, Netflix unveiled plans to establish a production facility in New Jersey, on the old Fort Monmouth campus in Monmouth County. By the end of this year, the streaming giant will start renovating the site, which has been largely abandoned for over a decade. The project is expected to generate more than 1,500 permanent jobs in production and over 3,500 construction-related positions. Netflix plans to invest $848 million into developing the 292-acre property, transforming it into 12 soundstages totalling approximately 500,000 square feet, with additional areas earmarked for film-related redevelopment and community facilities.

I can’t help but feel a tremendous sense of pride about our investment in New Jersey,” I shared during a press conference in November 2023. “I’m overjoyed at the prospect of strengthening our bond with this community through this project… The aim for this studio is to bring advantage and excellence to everyone in the region, and to create top-notch, superior quality TV series and films. I eagerly anticipate the day when you’ll see ‘Filmed in New Jersey’ on your favorite Netflix production.

In 2018, when Governor Murphy set up the film credit, his aim was to see three significant production facilities built in the Garden State – and that’s precisely what has happened.

In 2018, we reinstated tax benefits to encourage manufacturing and filming in New Jersey, focusing mainly on television and film. We’ve continued this support, maintaining our passion for the industry. However, what’s particularly exciting since then is that we’ve significantly expanded our investment in physical infrastructure, like soundstages and studios. This means we’re not only constructing facilities for a single episode or movie; instead, we’re making a long-term commitment. We have several large-scale or transformative studios on the way to New Jersey.

SIDEBAR:

New Jersey’s Film and Digital Media Tax Credit Program provides:

In this state, you could receive a tax credit that can be transferred, worth between 30% and 35% of eligible production costs you accrue here.

Qualified spend: 35% and 30% on qualified expenses within a 30-mile radius of Columbus Circle.

Labor: 35% on all above the line and below the line positions.

The annual budget is set at $430 million, with this plan lasting until 2039. If the funds for a particular year are depleted, production can carry over to the following year’s allocation.

$100 million legacy film Incentive
$150 million studio partner incentive
$150 million film-lease production company
$30 million digital

Compensation cap: $750,000 per individual

Minimum spend: $1 million (or 60% of total production expenses in-state)

Project cap: None

Additional uplifts: 2% or 4% on applications with an approved diversity plan

Diversity plan: not required unless applying for the diversity bonus.

To become eligible, a project requires:

2024 Motion Picture Camera Equipment: In August of that year, PRG transported Arriflex, Sony, and Panasonic camera setups along with their technicians to their 160,000 square foot facility in Secaucus, New Jersey. The growth of the film and television infrastructure in New Jersey, including rental houses, suppliers, and services, is expected to persist.

2024-09-07 19:18

New Jersey Expands Scope of Programs to Draw Productions as More Soundstages Break Ground

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