Sagamore reaches out to skeptic on development incentives

Under Armour founder Kevin Plank’s real estate firm has briefed a key Baltimore City Council member who is a frequent foe of development subsidies about plans to redevelop Port Covington in South Baltimore.

Carl Stokes, chairman of the Taxation, Finance and Economic Development Committee, said he had a discussion with the Sagamore Development Corp. team in the past few weeks. In his role as chairman Stokes plays a large part in moving legislation concerning development subsidies.

Previously, Plank indicated the development could require some form of public assistance to improve infrastructure in the area. It has never been made clear whether the development would need a subsidy, such as Tax Increment Financing. That requires the city to issue bonds to pay for infrastructure improvements. The bonds are then repaid with an increase from associated property tax revenue.

Stokes, who declined to identify specifically with whom he met, said the conversation did not involve specifics about possible subsidies, although the topic was “out there in the ether.”

“There was no specific ask. There were no numbers sought, no numbers. Nobody said, ‘It costs $300 million and we asked the city if they’d put up $50 [million].’ We didn’t have any of that discussion at all. Nobody actually brought it forward, you know, but it sort of floats out there unsaid,” Stokes said.

The councilman has previously been a strong critic of development incentives for projects such as Harbor Point and has advocated for lowering the city’s property tax instead of using a hodgepodge of incentives and tax credits. Gaining his support for subsidies for a project before its proposed would be a major victory for the developer. On Friday, Stokes said that he isn’t against development subsidies but that he thinks the city is too generous in their uses.

“The fact that we give money away so foolishly people would be foolish not to ask,” Stokes said.

In recent years Sagamore Development has purchased most of the land on the Port Covington peninsula. Since 2012, the firm and associated limited liability corporations have purchased 90 acres of land in the area for a total of $76.19 million. Earlier this summer the developer also announced it had purchased the 43-acre Westport site just across the Middle Branch of the Patapsco River.

Some projects at Port Covington, such as turning a former Sam’s Club into office space and converting a former city garage into a startup hub, have already begun. The Urban Design and Architecture Review Panel also approved plans for a Sagamore Spirit Distillery at Port Covington earlier this year.

Representatives from Sagamore have been briefing business leaders and economic development agencies about plans for the development, which are believed to involve a new campus for Under Armour. Those briefed about the plans have been urged not to divulge any details, but have described what’s being planned as game-changing for the city.

Sagamore has indicated that plans for the project with be unveiled in the next few weeks.

“Sagamore continues to engage with its public and private sector partners, as well as the broader Baltimore community about this exciting project that will bring significant economic investment and jobs to the area,” the company said in an emailed statement Friday.

Stokes expressed enthusiasm for the project and called it a fantastic development opportunity. He said the project could have a huge impact, and referred to it as the third portion of development around the harbor along with the Inner Harbor and Harbor East.

“I think this will be very dramatic as well as dynamic and it will bring in new commerce, I think new residents. … I think it will be  a great, dynamic thing if it goes off,” Stokes said.