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MILWAUKEE -- Following recent reports that the owners of Roundy's Supermarkets, Inc. here is seeking a possible buyer, the Milwaukee Economic Development Corp. could call in the balance of a $3 million loan package if Roundy's closes or moves its headquarters, according to local reports.
In 2003 Roundy's relocated its headquarters to downtown Milwaukee amid much fanfare and a $3.3 million financial incentive package that included a $300,000 relocation grant. However, the financial package could potentially be revoked if Roundy's closes or moves its headquarters in the event hat its owner, Willis Stein & Partners of Chicago, sells off the owner of Pick 'n Save stores, which is Wisconsin's top grocery chain.
Jim Scherer of Milwaukee's Department of City Development said the balance on Roundy's loan is $2.6 million. "The terms specify we may declare the full amount due and payable if the headquarters moves," Scherer told the Business Journal of Milwaukee.
If the buyer is another supermarket chain, the story, citing industry observers, said Roundy's headquarters at 875 E. Wisconsin Ave. will likely close. Conversely, if Roundy's is sold to another private equity firm, it's possible that the headquarters would remain in downtown Milwaukee.
The city of Milwaukee provided Roundy's with a series of financial incentives when it moved its headquarters to the then-new 875 Building from its longtime home in Pewaukee. The present Roundy's headquarters houses 500 employees in about 120,000 square feet of the complex.