Under Armour opening distribution facility in Sparrows Point

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Under Armour is opening a 1.3 million-square-foot distribution and warehouse facility at Sparrows Point. An addition to the Tradepoint Atlantic redevelopment project, the facility will be the Baltimore sportswear maker’s second distribution center in the region and fourth in the United States, the company announced Tuesday.

Eyeing an opening date in summer 2018, the company said the center is part of a collaboration between state and local officials to employ 1,000 at full capacity. The facility will help Under Armour expand its e-commerce business using state-of-the-art equipment and systems, officials said.

“Under Armour is a true Maryland success story, and this new e-commerce center is another way they are showing their commitment to our state and to the Baltimore region,” said Gov. Larry Hogan. “As a pivotal new tenant at Tradepoint Atlantic, Under Armour will play a big part in this site’s resurgence to a center of economic activity and trade.”

At 3,100 acres, Tradepoint Atlantic is the largest, privately-owned industrial redevelopment site and port on the East Coast.

The Maryland Department of Commerce has approved a $2 million conditional loan through the Maryland Economic Development Assistance Authority and Fund (MEDAAF) to help with project costs and will fund $2 million in real property and infrastructure improvements through the Maryland Economic Development Corporation (MEDCO). Under Armour is also eligible for various state tax credits, including Maryland’s Job Creation Tax Credit and Enterprise Zones Property Tax Credit as well as a new sales tax exemption on construction materials and equipment at this site.

Baltimore County is providing a $200,000 conditional loan for equipment purchases, pending County Council approval.

Under Armour’s other Maryland facility in Curtis Bay will stay open as will the company’s distribution houses in Rialto, California and Mount Juliet, Tennessee.

Meanwhile, Under Armour CEO Kevin Plank’s real estate firm, Sagamore Development Co., is seeking a $660 million public financing package, the largest in Baltimore’s history, to develop Port Covington. The $5.5 billion project would have 14,500 residential units, 200 hotel rooms and 1.5 million square feet of office space on roughly 260 acres of underutilized industrial land in south Baltimore. In a separate, independent project on the peninsula, Under Armour plans to build a 3.9-million-square-foot global headquarters.

The City Council is still working with Sagamore, residents and activists to put together a tax increment financing package that addresses the city’s needs and concerns. Should Sagamore not get approval for public financing, the developer has said Under Armour may leave the city.

“If the TIF does not get approved, Under Armour does not believe it can realize its vision in Port Covington. The current infrastructure simply will not support the growth we are experiencing and the future 10,000 teammates that will keep Under Armour at the cutting edge of innovation and design,” said Neil Jurgens, Under Armour’s vice president of corporate real estate on Tuesday.

Baltimore County has not reached out to Under Armour about relocating its headquarters if that were to happen, said Will Anderson, executive director of the county’s Department of Economic and Workforce Development.

“We have not and we would not for a number of reasons,” said Anderson.

Surrounding counties have a so-called “no poaching” agreement to prevent that sort of action.

“Municipal governments are not initiating those moves,” he said, adding that Port Covington will provide a lot economic benefits for surrounding counties.

Under Armour’s proposed distribution facility is Plank’s second investment in Sparrows Point. In May, an affiliate of his whiskey company, Sagamore Whiskey Properties LLC, bought a 17-acre property on North Point Boulevard.