NEWARK, NJ — A complex batch of funding will provide more than $100 million to support "clean energy" projects at the Lionsgate movie studio in Newark.
State officials recently announced the closing of a $101 million loan for the still-under-construction film studio under the Garden State Commercial Property Assessed Clean Energy (C-PACE) program.
The money will be used to build a 1.1 mega-watt (MW) solar power system with anticipated annual generation of 1.34 million kilowatt-hours (kWh). The funding will also pay for installation of seven electric vehicle charging stations, energy-efficient lighting and HVAC systems, and water conservation measures.
Spanning 12 acres on the site of the former Seth Boyden Housing complex, Lionsgate Newark will feature multiple soundstages, production offices, set-building facilities, and full on-site production services including grip/electric, equipment storage, catering, props, parking, security and more.
The $125 million facility will be the first purpose-built, full-service film and television production complex in New Jersey. It is expected to create more than 600 long-term production jobs and generate an anticipated annual economic impact of more than $800 million, developers said.
The facility is owned and operated by Great Point Studios. Construction started in December. The studio is expected to open in 2027, developers said.
WHAT IS C-PACE?
The C-PACE program fully launched in late July. The state-enabled, locally administered program allows qualifying commercial real property owners to access financing for "energy efficiency, renewable energy, water conservation and resiliency improvements" on their buildings.
Here's how it works, according to the Jersey Economic Development Authority:
"The Garden State C-PACE Program allows property owners to repay investments from Qualified Capital Providers into eligible projects through a special assessment to a Participating Municipality, similar to the owner's real property tax, sewer, or water bill. The Participating Municipality then remits the payment to the initial capital provider. This unique form of financing results in lower-cost, longer-term financing, making it easier for projects to be cash flow positive from the outset. Municipalities are required to opt-in prior to any project application."
Lionsgate Studios Newark was announced as New Jersey's first-ever Studio Partner in December 2022, allowing the company to access expanded benefits under the state's Film and Digital Media Tax Credit program. Under the designation agreement, Lionsgate commits to occupy a New Jersey film production facility for at least 10 years and is potentially eligible for a 40 percent base tax credit for qualified production expenses on future New Jersey film projects.
The latest funding news for the new movie studio got a thumbs-up from Newark Mayor Ras Baraka.
"Rising from a long-neglected expanse of land in the South Ward, this investment brings palpable hope in the form of forward-facing infrastructure, job creation and over-arching economic development," the mayor said.
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