Lionsgate Breaks Ground on New Jersey’s First Studio Built by Major Entertainment Company

Construction kicked off on New Jersey's first production facility built by a major entertainment company. The site sits in Newark's South Ward.

This location once housed the Seth Boyden Houses, a piece of Newark history that dates back decades.

New Jersey Governor Murphy and Newark Mayor Ras Baraka made the announcement on Thursday alongside Lionsgate and Great Point Studios. The complex rises just down the block from the Temple of Hip Hop, in an area recognized for arts and performance.

Dr. Pilar Scratch lives in the area. Her family works in entertainment. She shared her feelings about what's coming. "My family is in the business and we are excited for the opportunity," Scratch said, per PIX11. "We are thrilled and excited; we can't believe it."

The Seth Boyden Houses opened as Newark's first public housing development, welcoming families during the 1940s when the city needed affordable homes.

Residents left in 2015. The site sat vacant for years. Crews tore down the buildings three years ago, leaving only an empty school building behind.

The state grew its film and media tax credit program this year, opening doors for production companies statewide. Two other facilities will open next in Bayonne and Fort Monmouth, according to PIX11.

These tax credits lure production work to New Jersey. Companies that film here get financial breaks.

The South Ward spot offers easy access to transportation. Local talent lives nearby. Entertainment companies have been eyeing the area more in recent years.

This announcement shows how states now fight for film and television work, using tax incentives as their main weapon to attract big productions.