Palermo Properties, LLC will receive $22 million in New Markets Tax Credits, and a $750,000 loan from the Department of Commerce to secure construction of a major food plant in Milwaukee's Menomonee River Valley. Gov. Jim Doyle made the announcement at a ceremonial groundbreaking where the plant's construction is already underway.

The New Markets Tax Credits will help pay for construction and new equipment. In building the frozen-pizza plant, Palermo Properties will increase its production capacity and consolidate operations, relocating 85 jobs currently based in Illinois. New Markets Tax Credits are specifically targeted to business expansion deals in distressed urban and rural areas that would otherwise not move forward.

The tax credit allocation was made by the Wisconsin Community Development Legacy Fund (WCDLF). WCDLF is overseeing statewide distribution of a $100 million allocation of federal New Markets Tax Credits. The fund's main partners are the Wisconsin Housing and Economic Development Authority and Legacy Bancorp of Milwaukee. WHEDA and Legacy created the WCDLF in their successful attempt to obtain the federal tax credits.

Other New Markets Tax Credits that have been awarded by WCDLF in metro Milwaukee include a $4 million allocation to the city's minority-owned Lena's Food Market chain, and $8 million to an office building development in the rapidly redeveloping Third Ward. In addition, as part of the fund's partnership agreement, Milwaukee-based Legacy Bancorp has received a $6 million allocation to create bank reserves worth about $50 million for additional commercial lending in the central city.

WCDLF this year has distributed nearly $34 million in tax credits to Milwaukee area developments, creating about 350 jobs. Statewide, the fund has now awarded tax credits totaling $83 million to new developments, creating more than 1,600 new jobs. WCDLF is currently pursuing a second-round award of $150 million worth of the highly sought-after tax credits.

WHEDA is Wisconsin's state housing finance authority. Its goal is to stimulate and preserve affordable housing, small business, and agribusiness. Legacy Bancorp is the only bank holding company in the nation organized by African-American women. It is dedicated to providing financial services to underserved neighborhoods in Milwaukee.