Baltimore’s Port Covington Project Takes Major Step Forward

Port Covington RenderingRendering of the Port Covington development project in Baltimore, MD

Port Covington, the currently derelict industrial area stretching across 260 acres of land and three miles of waterfront in South Baltimore, is slated to get a complete makeover.  For years, urban planners and developers alike have tried to find a way to create vibrancy in this area but have always been stumped by its poor environmental quality, lack of connectivity to the rest of the city, and sheer size of barren and neglected industrial land.  Now, Kevin Plank, owner and founder of Under Armour, plans to change that with his development plans for the area.

Earlier this year, Sagamore development, Kevin Plank’s real estate development firm, pitched their mixed-use development to the Baltimore Development Corporation (BDC) and were applauded with their designs.  Bill Cole, BDC president and CEO, said that it was “a tremendous opportunity for Baltimore,” among other accolades regarding its well structured financing goals and strategic plans.

Under Armour Campus Rendering - Port CovingtonRendering of the future Under Armour headquarters campus at Port Covington

The final project will add 15 million square feet of mixed-use space to the Port Covington area – 5.5 million SF of office space, 3.9 million SF for Under Armour’s campus expansion, 1.5 million SF of retail space, and 4.1 million SF of hotel, park, manufacturing, and parking uses. For Kevin Plank, Port Covington will be the largest he has undertaken since his creation of Under Armour itself.

While it is a huge, seemingly overwhelming, project for an often-overlooked city like Baltimore to undertake, it will create over 26,500 jobs over its 20-year timeline, helping to decrease the city’s unemployment rate, while bringing a sense of vibrancy to the area. Overall, the project will cost about $5.5 billion. Sagamore Development is requesting a whopping $1.1 billion in support from local, state, and federal governments, while the remaining costs will come from private investors and other investments.

Last Monday, there was major positive news regarding project financing. In a 12 – 1 vote, Baltimore City Council gave final approval of a $660 million public financing package for the project through the use of Tax Increment Financing (TIF). This financing was contingent upon an agreement that the Sagamore Development Company fulfils requirements for local hiring, minority- and women-owned business inclusion in the project, and 20% affordable housing at the Port Covington development. Contingent on meeting these requirements, Sagamore will have well over half a billion dollars to help finance all of the public related infrastructure within their project.

Not only is this a win for Sagamore, but also for the city, as it does not have to shell out money directly from its budget, due to the use of tax increment financing with bonds. Now with this final approval of infrastructure financing, Sagamore can begin their 20-year journey of development and revitalization.

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