Film Studio Proposal In West Orange Poised To Take Big Leap Forward

WEST ORANGE, NJ — One of the most high-profile real estate deals that West Orange has seen in years – which would clear the way for a new film studio in the township – could take a big step forward this week.

On Tuesday, the West Orange Town Council has several items on their plate related to a redevelopment agreement with Matrix Development Group. See the meeting agenda here.

If it crosses the finish line, the deal would approve a film studio on about 12.2 acres of property within the town’s Film Services Overlay District. The proposed project would be located adjacent to the Thomas Edison National Historical Park in downtown West Orange, and would be directly behind the Edison Lofts on Main Street – the last surviving building of Edison’s once sprawling laboratory complex.

See related documents at the links below:

• 405-23 RESOLUTION DESIGNATING MATRIX AS REDEVELOPER(14132590.2) (11.29.23).PDF
• 405-23 MATRIX_WEST ORANGE REDEVELOPMENT AGREEMENT OUTLINE.PDF
• 405-23 MDGA WEST ORANGE REDEVELOPMENT AGREEMENT (CLEAN).PDF
• HENDRICKS APPRAISAL COMPANY - CONSULTING ASSIGNMENT DATED 11.27.23.PDF

A township spokesperson released more details about the deal in a statement on Friday:

“The redevelopment rights for Matrix will pay the township $200,000 that represents the amount of property taxes that would have been collected on the property in 2023. The period known as the ‘due diligence period’ can be extended for an additional eight months with a possible additional payment of $200,000 to the township. During this period, Matrix will specifically formulate project details, finalize a purchase and sale agreement for the township properties, and further evaluate the current environmental conditions. The key terms for a proposed redevelopment agreement between the Township of West Orange and Matrix Development Group will be considered for approval at the Dec. 5 township council meeting.”

The statement continued:

“The objective of the redevelopment project is to diversify mixed-use development and the economic base of West Orange, by promoting film production activities known as ‘studio use’ adjacent to the location of the world's first film production studio. The studio use is estimated to be between 150,000 and 350,000 square feet. It will include between three and six production stages ranging from 20,000 to 30,000 square feet each. Each production stage will be serviced by on site production services, including but not limited to grip and electric, equipment, props, set building, location catering, cleaning service and security. The facility will also include office and support space as well as parking to accommodate between 200 to 400 cars and 30 to 60 trucks. Once fully operational, it is anticipated 300 to 600 new full-time jobs will be created as a result of the studio use.”

West Orange Mayor Susan McCartney and council member Bill Rutherford said the proposal would be a win for the township.

“We are excited for this project that will help move West Orange forward economically speaking for generations to come,” McCartney said.

“A film studio in downtown West Orange is the most appropriate historic location in the world and will bring prosperity to the town just as Thomas Edison did in the late 1880s,” the mayor added. “This will provide our town and its stakeholders financial stability that will positively impact our business owners, residents and local economy.”

“It will take a novel project like this – with a major investment in our Main Street corridor – to help us create the vibrant downtown that West Orange residents have been desiring for years,” Rutherford said.

Another supporter of the proposal, senator-elect and former West Orange mayor John McKeon, attended the Nov. 20 town council meeting to advocate for the deal. Read More: Film Studio Development Proposal Discussed In West Orange (VIDEO)

Others in the community have been more cautious about what the proposal could mean for West Orange.

“New Jersey redevelopment law requires that prior to choosing a redeveloper for a parcel of land, the council must adopt a redevelopment plan,” local nonprofit advocacy group Our Green West Orange said Monday.

“Yet, this week the council is being asked to vote to hand over our downtown redevelopment area to Matrix Development Company without having first presented a real plan,” the group contended. “Matrix has only presented an outline that floats the possibility of a film studio.”

The proposed sale to Matrix is $1.7 million dollars less than what West Orange paid for it, the group said, adding that a payment in lieu of taxes (PILOT) agreement may be a possibility for the developer.

“What is the rush to approve this?” the group questioned.

West Orange isn’t the only municipality in New Jersey that has seen a development proposal for a movie studio in recent years.

In 2022, Great Point Studios and the New Jersey Performing Arts Center announced a new partnership with Lionsgate. The goal? To build a massive film production facility in Newark.

• See Related: Lionsgate Will Get Extra Tax Breaks To Make Movies, Shows In Newark

Last December, Netflix announced they will pay $55 million to buy 292 acres at Fort Monmouth. Netflix plans to construct one of their biggest film studios in the world there, including 12 soundstages.

• See Related: Netflix's Massive NJ Studio Takes Big Step Forward, Report Says

Send local news tips and correction requests to [email protected]. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site. Don’t forget to visit the Patch West Orange Facebook page.