Port Covington

redevelopment

examined

Sagamore Development is requesting billions in public funds.

Is it a good deal for Baltimore?

Sagamore Development, a private real estate firm owned by billionaire Under Armour CEO Kevin Plank, has proposed a plan to redevelop Port Covington, a mostly industrial waterfront area in South Baltimore. Over the next two decades, the ambitious plan would remake the area with offices, homes, shopping, restaurants, waterfront parks and a new state-of-the-art campus for Under Armour.

Sagamore has requested $1.1 billion in support from local, state and federal governments for needed infrastructure for the roughly $5.5 billion project. This includes $535 million in tax increment financing from Baltimore City, with the money coming from municipal bonds and repaid through new property taxes generated by the project. This is by far the largest tax-increment financing deal, or TIF, ever proposed in Baltimore and among the largest in the country. The developers of Harbor Point, for example, received $107 million in TIF funding for a roughly $1 billion project.

Supporters say the project, which encompasses about 260 acres, changes the city for the better, creating thousands of jobs, securing Under Armour’s growing presence and revitalizing another part of the city’s waterfront.

Critics charge the proposal gives too big a subsidy to Sagamore, given the firm’s resources and Baltimore’s critical needs in other areas. They say city support for the improvements will exacerbate the city’s economic divide as repayment of the TIF restricts the general use of additional tax revenue for decades. They also voiced concerns about how fast the deal was moving through the city’s approval process.

Below we examine the proposed project and criticisms.

What is being proposed? Sagamore Development Co., the real estate firm privately owned by Under Armour CEO Kevin Plank, plans to create a new street grid and ring of riverfront parks on mostly empty industrial land in South Baltimore. The firm owns about 160 acres of the roughly 260-acre master plan area, a peninsula south of Interstate 95 and Federal Hill. The area contains a Walmart, which closed this year, and a former Sam's Club, that’s already been converted into Under Armour offices, as well Swann Park, City Garage, Nick's Fish House and The Baltimore Sun’s printing plant, for which the newspaper has a long-term lease. The firm is seeking more than $1.1 billion in support from local, state and federal governments for needed infrastructure. This includes $535 million in tax increment financing (TIF) from Baltimore City, with funding coming from municipal bonds and repaid through new property taxes generated by the project. Sagamore will sell land to partners who will build new apartments, stores and offices, as well as manufacturing space and a new headquarters for Under Armour. The master plan divides Port Covington into several districts: West End, Cromwell Street, Hanover Street, Founders Park, East End, East Waterfront, East Waterfront Park, West Waterfront Park and UA Campus. It will feature several new parks and greenways. The development will include shared-use recreational paths, bike lanes, bike-sharing stations and eventually a bike and pedestrian bridge to Westport. Phase 1: Distillery, City Garage, Bike Path, Nick's Phase 1 of the project, which already is underway, redeveloping City Garage as offices and incubator space and building a whiskey distillery for Plank's Sagamore Spirit rye as well as creating a bike path. Phase 2: East Waterfront Phase 2 will focus on the property's eastern end with designs calling for a lively shopping and residential district. The plans for this phase allow 1,000 residences -- nearly 900 of them studios or one-bedroom apartments -- as well as more than 500,000 square feet of retail space, 300 hotel rooms, 45,000 square feet of so-called "maker space" and a 2,500-square-foot "civic" building, possibly a post office. A new water taxi stand, eastern waterfront park and 1.5-acre plaza, as well as 3,000 parking spaces are also planned. Phase 3: Hanover, Cromwell, McComas, I-95 and light rail Phase 3 would focus on Hanover and Cromwell streets, with room for more than 1,886 additional residences; more than 240,000 square feet of retail, 1.15 million square feet of office space; 46,500 square feet of maker space and 3,350 new parking spaces. The firm also expects changes to I-95, a light rail spur and the addition of about 4,000 square feet of civic space. Phase 4: West End Phase 4 would focus on building out a largely residential "West End," with 2,000 more residences, including a smattering of about 74 townhouses. The West End would also include about 800,000 square feet of offices, 130,000 square feet of retail; 54,000 square feet in retail space; and 95,000 square feet in manufacturing. This phase would also involve west shore park, 13,000 square feet of civic space, including a possible school, paddock and "cultural center" or music venue. Phase 5: West End and Founders Park The final phase involves the involves the relocation of The Baltimore Sun, which has a long-term lease with Sagamore for its printing plant. The Sun's plant would be replaced by more than 8,500 new residences; more than 300,000 square feet of retail; about 300,000 square feet of office space and 200,000 square feet of maker space and 7,900 parking spaces. Founders Park and 11,500 square feet in civic space, identified as a possible library, would also be built as part of this phase. If approved, the master plan and zoning allow for significantly more construction than the firm says it expects its partners to build. In its TIF application the firm said it expects the development to include: 1,500,000 square feet of destination, attraction, entertainment and specialty retail

Over 7,500 residential units; mostly rental

500,000 square feet of “maker” and industrial/light manufacturing space

200+ hotel rooms

A 3.9 million square foot Under Armour global headquarters

1,500,000 square feet of additional office space

Photos courtesy of Sagamore Development

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