One of New Orleans’ leading construction firms is planning a significant expansion in Jefferson Parish, which might include relocating its corporate offices. This move is part of a strategy to enhance its business segment focused on manufacturing and assembling building components in a factory setting.
RNGD, formerly known as Palmisano Construction, is embarking on a $26 million expansion of its pre-fabrication factory near the Earhart Expressway in the Labarre Business Park. The expansion plans also include establishing a new training academy for construction workers and new corporate offices. Currently, the company’s headquarters are located in the Lower Garden District.
CEO Wes Palmisano is in negotiations with Jefferson Parish to secure a multi-year property tax break as part of this proposed relocation.
The expansion is expected to create approximately 250 to 260 permanent jobs over the next five years, more than doubling RNGD’s current workforce, with an annual payroll exceeding $37.8 million, according to official documents.
In April, JEDCO initiated discussions with RNGD regarding the incentive terms. Although the agreement is not yet finalized, Palmisano mentioned that the expansion and potential office relocation plans remain tentative.
Palmisano expressed optimism about making an announcement soon, though much hinges on the outcomes of negotiations with JEDCO and whether the project’s cost estimates are financially viable.
“The long-term vision — to expand our prefabrication facility — is a constant,” Palmisano stated. “But we are trying to decide if it makes sense. There are still a lot of balls in the air.”
Meanwhile, RNGD’s parent company, WJ Palmisano, has listed its 30,000-square-foot headquarters at 1730 Tchoupitoulas Street for sale at $10 million. This building was opened in 2017.
‘Exciting plans’
Should the expansion project proceed, it would advance Palmisano’s goal of increasing off-site, modular construction to enhance efficiency in building projects.
Palmisano’s grandfather founded the firm as a homebuilding business in New Orleans after World War II. Although the company continues to handle most construction projects traditionally on-site, it has recently shifted its focus towards manufacturing components for buildings, bridges, and roads in a factory for easier and more efficient assembly.
In 2022, Palmisano opened a 35,000-square-foot factory on a 1.5-acre site in the Labarre Business Park for RNGD. Earlier this year, he purchased an additional 5.5 acres adjacent to the factory for $3.8 million to support expansion efforts.
The expansion plans include constructing a new 80,000-square-foot manufacturing and steel fabrication facility and enlarging the existing factory, thereby boosting RNGD’s production capacity.
The project also entails building a 20,000-square-foot facility for Renegade Academy and a new 35,000-square-foot corporate office, as per documents submitted to JEDCO.
Palmisano noted that the expanded training academy would allow Renegade Academy to grow, offering training in general construction skills and proprietary specialty skills used in modular building processes.
With an enhanced training facility, Renegade Academy could also expand into soft-skills training and leadership development, which are in high demand in the construction sector, Palmisano added.
“The training component is what is the most exciting thing about this to us,” said JEDCO Executive Director Jerry Bologna, who is collaborating with Palmisano on bringing the project to Jefferson Parish. “It would be a good thing for the parish.”
Incentives
Both Bologna and Palmisano indicated it’s premature to discuss the specifics of the potential tax break, known as a Payment In Lieu of Taxation (PILOT).
Typically, such deals last for 10 to 20 years, allowing a company to make an upfront or annual payment to the parish that is less than its property tax bill would be. These incentives are linked to job creation and can be revoked if hiring targets are not met.
In 2016, before Palmisano commenced construction on its 30,000-square-foot office building on Tchoupitoulas, it sought a 10-year property tax break from Orleans Parish and received preliminary approval. However, the company later withdrew the request and did not receive the incentive, Palmisano explained.
Palmisano has not yet decided whether to sell the building, which was designed to allow the addition of a third and fourth floor. He listed it to gauge market interest.
So far, the building has attracted considerable attention but no offers, said Jack Egle, a broker with Felicity Property Co., handling the listing.
“It could be for an owner-occupant or it can be reconfigured as a multitenant building,” Egle noted. “It could sell to an investor who could lease it.”
