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Plans for struggling Milwaukee museums include hotel and venue

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Two small public museums in east Milwaukee could be transformed into private businesses – a boutique hotel and an events venue – under two new proposals.

These ideas compete with other plans to preserve the financially troubled Villa Terrace Decorative Arts Museum and the Charles Allis Art Museum – and to transfer ownership of those two county-owned museums to private, nonprofit groups.

Milwaukee County has donated approximately $225,000 annually to Charles Allis and Villa Terrace’s activities since 2015. But the 2025 budget faces challenges.

The county board’s Parks and Cultural Affairs Committee could discuss proposals at its Sept. 3 meeting. County Executive David Crowley’s administration favors a plan from Friends of Villa Terrace Inc.

Friends want to preserve Villa Terrace

Villa Terrace (2200 N. Terrace Drive) would remain as a museum, and the county would possibly transfer ownership to the private, nonprofit group.

The Friends group wants the county to provide $3 million over five years to complete deferred maintenance on the century-old property.

The group also wants $125,000 over three years “to transform operations.” It plans to raise $1.5 million in private funds to create $500,000 in working capital and finance improvements.

The group is ready to discuss the future of the Charles Allis Art Museum, the report said.

The plan eliminates the county’s financial ties to Villa Terrace but maintains it as a museum, according to the report from the Crowley Department of Administrative Services.

In addition to providing an option for the Allis Museum, 1801 N. Prospect Ave., it is also “aligned with the county’s racial equity goals and its health initiative,” the report said.

“The plan includes ADA access, translation of materials into multiple languages, free days for low-income visitors, family days and youth programs,” it says. “In addition, the FOVT board includes a nationally recognized diversity, equity and inclusion consultant.”

In the meantime, Charles Allis and Villa Terrace Museums Inc. have submitted a plan that would see the private, nonprofit group continue operating the museums with financial support from the county.

The group is asking for $10 million for building renovations and is proposing a “gradual reduction” in county operating funds over seven years.

“Ultimately, this proposal received the lowest rating due to the unrealistic capital request, length of continued operational support, lack of fundraising goals, and lack of a clear end to the county’s investment,” the report said. It also said the group has since discussed reducing its funding requests and other matters with county officials.

A representative of the group could not be immediately reached for comment.

The other two proposals come from companies.

Bartolotta wants to use Villa Terrace for dining and events

Bartolotta Restaurant Group LLC, in partnership with Delafield-HF Hospitality, would develop a plan to redevelop Villa Terrace into a “high-end hospitality venue,” with Bartolotta purchasing the property for a price to be determined.

Bartolotta operates several restaurants and a catering service in the Milwaukee area. HF Hospitality operates the National Block venue in Milwaukee and The Commodore restaurant and event center in Hartland.

“Aside from a restaurant operation that would be open to the public, Villa Terrace would continue to be open to the public through regular tours at set dates and times,” the report said. The building’s artwork would be returned to the county.

“This proposal eliminates the operating and capital costs for the Villa Terrace; however, the Villa would no longer be a museum and public access would be restricted,” it says. Furthermore, it does not address the Allis Museum.

A representative for Bartolotta was not immediately available for comment.

Allis Museum could become a boutique hotel

Dynamic Events LLC, an event planner, would use the Villa Terrace as an event venue and the Allis Museum as a boutique hotel/guest house – the number of rooms is yet to be determined.

The company would purchase the lots for $1 each, with the county also providing a $4 million, 20-year loan at 4 percent interest. Additional funds for redevelopment of the lots would come from the developer’s equity, a bank loan and historic preservation tax credits.

Dynamic Events would align its ownership of Villa Terrace with public access, the report said.

“The proposal envisages hosting cultural events such as art exhibitions, musical performances and theatre productions, as well as community events such as gardening workshops, craft fairs and seasonal celebrations,” it says. Public access would be provided on Mondays and Tuesdays, with free entry for residents on the first Tuesday of each month.

“This proposal eliminates capital and operating costs at both museums, but a funding commitment from the county would be required,” the report said. “Both museums would then no longer be county property and public access would be restricted.”

David Caruso, owner of Dynamic Events, told the Milwaukee Journal Sentinel that his plan seeks to “preserve both landmarks in a way that benefits each other – a boutique hotel and a private/public event venue.”

“I encourage the county to recognize that it is time to move forward with a new ownership group that is not tied to the past mismanagement of the buildings,” Caruso wrote in an email.

Tom Daykin can be contacted via email at [email protected] and followed on Instagram, X and Facebook.

By Bronte

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