I googled the above internet play on the German language and I came across a rather tasteless version, but one which one cannot think as an English speaker when living in Southern Germany and much more Austria:
I would wager I saw this very sign nearly everyday for some years. And it never struck me as not completely insane. Especially given the absolute lack of Jews in the area.
Sorry for ruining the fun.
I didn't think they did that anymore???
Gasse is the German word for alley or lane.
Ah, hence PanMichal's "wrong on so many levels".
Wife: Hey, hon, where's the nearest bank?
Husband: There's a couple down on Jew Lane!
Wife: OK, I've told you before, that joke's not funny.
Husband: What, you gonna divorce me? Need a lawyer? I bet you can find one on...Jew Lane!