The Municipal Palace of San Pellegrino Terme, located at the end of the tree-lined avenue, was completed in 1890. In addition to housing municipal offices, it also accommodated schools, the post office, and the telegraph, representing one of the main landmarks of the town's public life.
In 1907, the building underwent a significant expansion and renovation project entrusted to architect Squadrelli and engineer Chitò. The work gave the structure elegant Art Nouveau lines, visible especially on the facade, and made the spaces more functional for the growing needs of the community. The building was expanded laterally to reach its current dimensions: the new rooms on the ground floor were designated for postal and telegraph offices, while those on the upper floor housed municipal offices and school classrooms. In the same year, the town hall was also equipped with telephone service.
In 1930, the palace was renovated again under the design of architect Luigi Angelini, adopting its current elegant Renaissance-style facade that still characterizes its appearance today.