Community Renewal Good Stories - Milwaukee

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Milwaukee, Wisconsin, RC

Renewal Community Tax Incentive Allows Pizza Company to Make More Dough

The new Palermo Villa Facilities

After 40 years of continued growth, Palermo Villa, Inc. decided to consolidate its offices and plants into a single facility. With locations in Elk Grove Village, Illinois, and Milwaukee, Wisconsin, Palermo Villa needed to make a choice between the two cities. The Commercial Revitalization Deduction (CRD), a tax incentive available to businesses in HUD’s Renewal Communities, is an important financial tool that helped Milwaukee remain home to Palermo's pizza. Each year, businesses in the Milwaukee Renewal Community may claim CRD allocations totaling $12 million to construct or substantially rehabilitate commercial properties. These allocations make it possible to deduct construction or rehabilitation costs over just 10 years instead of 39 years.

Palermo Villa invested $27 million to construct a new, 135,000 square foot facility in Milwaukee's Menomonee Valley and as a result received a $10 million CRD allocation. In addition, Palermo's retained 195 employees in Milwaukee and was able to relocate 85 employees from Illinois to Milwaukee with the construction of its new facility.

For more information about the Milwaukee RC, please contact Senior Economic Development Specialist Lori Lutzka, City of Milwaukee, at 414-286-5846.