Grey Ops LLC, a federal technology-contracting firm that produces an explosion mitigation technology called Silent Spring, plans to construct an approximately 18,000-square-foot office headquarters and manufacturing facility at Patuxent Business Park in Lusby, Maryland, according to the Calvert County Board of County Commissioners.
Patuxent Business Park is a 92-acre business campus designed to accommodate a variety of uses including Class A office and flex space. It was recently designated a federal opportunity zone and offers additional incentives for businesses seeking to purchase land and build. Construction of the new facility will begin in the second quarter of 2019 and will result in at least 10 new high-technology jobs for the county.
As reported last month by The DI Wire, Grey Holdings Group, the holding management company for Grey Ops LLC, launched an opportunity zone fund focused primarily on defense technology, which the company claims is the first of its kind. Opportunity zones, born out of the 2017 Tax Reform Act, are designed to spur economic development and job creation in distressed communities by providing tax benefits to investors.
“We selected Patuxent Business Park as a location for our company for a variety of reasons,” said Steve Luginbill, CEO for Grey Ops. “It is located in a federally qualified opportunity zone, which will result in additional investment in our tech transfer business; it is in a Calvert County Commerce Zone, which will result in lucrative tax credits; and it comes with the promise of an accelerated development review process, which means a reduced total construction timeline.”
Patuxent Business Park is also a Calvert County commerce zone, a designation that extends tax credits to qualifying new and expanding businesses. The commerce zone real property tax credit is calculated on the value of the qualifying, new construction.
To qualify, businesses are required to construct new premises or expand existing premises. The real property tax credit is 50 percent in years one through five, the credit goes to 25 percent for years six and seven, then to 15 percent for years eight through 10 before expiring. The credit applies only to real property taxes imposed by Calvert County.
Grey Ops, an opportunity zone business, currently owns the licensing rights to a product called “Silent Spring,” which neutralizes improvised explosive devices (IEDs) when poured onto the explosives. Silent Spring was invented and developed by the U.S. Navy.