WASHINGTON: While a majority of the money comes from private investment, federal, state and city money will be needed to make the Port Covington project a reality. Under Armour founder Kevin Plank said he is ready to take on the tremendous project and is even running television ads about it. Plank’s development company, Sagamore Development, presented a number of proposals, plans and the price tag.
Baltimore Development Corp. President and CEO Bill Cole paid close attention to Sagamore’s presentation and said he was intrigued by the numbers and the funding. “This is a critically important project and a tremendous opportunity for the city of Baltimore,” Cole said. The development will be 15 million square feet, of which 5.5 million square feet will be office space, 3.9 million will be for Under Armour’s headquarters campus, 1.5 million will be of retail space and the rest will be for hotels, manufacturing and parking.
In order for the project to become a reality, a number of public infrastructure improvements are needed, including 17 new streets, 66 new intersections, sidewalks and bike paths with access to 40 acres of parks and highway and transit access from all over the city.
In order to pay for the initial infrastructure, the proposal calls for $535 million from Baltimore City paid in tax increment finance (TIF) bonds, and $900 million from federal, state and private funding. Over a 25-year period, $5.5 billion will come from private funds to complete the project. Cole said that, as far as the city is concerned, the TIF bonds would make sure the city never has to shell out any money.
“The city is not losing any money. Because of the TIFs, you’re generating new money that would pay the debt service on it, and in this case, it looks like you would generate more than enough to cover it, plus additional benefits to the city,” Cole said. The BDC has at least two more planned meetings before submitting a proposal to the mayor.
Marc Weller, president of Sagamore Development, released a statement to 11 News: “We’re excited to be a part of building something great in this city and proud that Baltimore is home to one of the largest urban renewal projects in America right now. The redevelopment of Port Covington will bring thousands of jobs to Baltimore City, new businesses, new parks, new transit, new ways to reach the waterfront and more. Our goal is to build on Baltimore’s hardworking heritage and harness the city’s innovative spirit to create a thriving, active and inclusive waterfront neighborhood at Port Covington. We want everyone to be a part of this and we are committed to building it together.
“Currently, the public infrastructure needed for the transformation of Port Covington simply does not exist. In its present state, the roads, bridges and utilities in Port Covington, just cannot support the significant economic growth coming to South Baltimore. Tax Increment Financing (TIF) is a way for Baltimore to pay for much-needed public infrastructure improvements without raising taxes on city residents or tapping into existing city resources.
To put it simply, it’s a way for Baltimore to use future property tax revenue from new development to stimulate much-needed economic growth today. There are no tax breaks for developers involved; there are no subsidies; there are no handouts. This is Baltimore City building up Baltimore City for the future — to attract new businesses, create more jobs and support the continued growth and expansion of Under Armour here at home in Baltimore.”
