By Jahla Seppanen
Under Armour has closed on a $70.3 million deal to purchase the land for its new headquarters along Baltimore’s waterfront.
The sporting goods brand revealed earlier this year that it would be part of the Port Covington development, one of the largest urban renewal projects in the country. The Baltimore Sun reported that Under Armour purchased the land from CEO Kevin Plank’s private real estate firm for more than double what the firm paid for it when the real estate deal went through in 2014.
Port Covington was initially built as a railroad terminal that opened in 1904. The site was renovated for commercial use to house a Walmart, which later closed at the start of 2016. Under Armour will use tax-increment financing (TIF), for the land transformation. Buildportcovington.com explains the TIF money used to develop and modernize the area will come from outside investors who lend money for a city to build public infrastructure, thereby making it possible for private businesses to come in and build. Revenue generated from property taxes of those private businesses goes full circle to pay back initial outside investors.
In 2014, TIF was used in Altoona, IA to build a Bass Pro Shop superstore in an attempt to attract more development. The Bass Pro location opened in August 2009 and although more people were drawn to the area as a result, it also skewed property valuations causing higher property taxes for nearby towns, and school districts were forced to rely on property owners to meet budgets.
A month ago, Grandview’s Board of Aldermen in Missouri unanimously approved a $300 million TIF for the building of a Gateway Village Sports Complex that will be the campus of soccer fields, hotels and shops. According to The Martin City Telegraph, the complex is set to be the largest amateur sports complex in the state. The Board expressed its excitement for the new development in relation to its ability to act as “a one-stop-shop” for visitors.
“Zero dollars go to Under Armour,” said an informational video on the site, as a sketched U/A layered logo sits on top of the Port Covington area. The video also positioned the Under Armour relocation as the brand investing in the revitalization of Baltimore, promoting growth and job opportunities.
Photos courtesy of Build Port Covington
