Work has officially resumed at Port Covington after its development team, consisting of lead investors Sagamore Ventures and Goldman Sachs Urban Investment Group and lead developer Weller Development, announced on Jan. 5 that financing for the next development phase has been finalized.
This decades-long redevelopment project is located in South Baltimore and comprises 235 acres of Baltimore’s prime waterfront. Upon completion, Port Covington is set to include up to 18 million square feet of new, mixed-use development, 2.5 miles of restored waterfront and more than 40 acres of parks and green space.
This new financing deal marks an important milestone for one of the largest urban revitalization efforts in the United States. Capitalization totals more than $650 million, including $137 million in Tax Increment Financing bonds.
In a recent media statement, Kevin Plank, founder of Under Armour and lead investor in Port Covington, said, “The TIF bond sale was met with overwhelming demand, and the overall deal successfully closed last week, which is significant proof of institutional investors’ belief in the future success of the project … Port Covington, a decades-long endeavor, will have a fundamental and far-reaching impact on Baltimore’s future, and we are eager to bring additional economic benefits, investment and jobs to the City and our surrounding neighborhoods.”
Port Covington’s next phase of development includes the construction of five new buildings totaling 1.1 million square feet and 10 acres of parks and public space. Work had been underway since May 2019 but was paused due to the COVID-19 pandemic.
Maryland Gov. Larry Hogan express his excitement in seeing the project move forward. “This project has the potential to bring tens of thousands of new jobs into the region and create significant economic growth not only for Baltimore City, but our entire state. This is truly an outstanding example of years of collaboration between the city, state and the private sector to ensure that Maryland continues to be open for business.”
In conjunction with the closure, Port Covington has provided $9 million in baseline funding to the South Baltimore Seven Coalition (SB7) as part of its Community Benefits Agreement. The coalition, which consists of the South Baltimore communities of Brooklyn, Cherry Hill, Curtis Bay, Lakeland, Mount Winans and Westport, was created so that the communities could share in the benefits associated with the redevelopment of Port Covington.
Mike Middleton, chair of the South Baltimore Seven Coalition, said in a recent media statement, “This closing on the TIF funds culminates four years of partnership and collaboration between the Port Covington Development Team, Weller Development Company and the six communities of SB7. The future looks brighter each day for our communities and Baltimore City as we bring additional resources to the table to make a dream envisioned four years ago a reality.”