Villa Terrace and Charles Allis Museum could become event space and hotel » Urban Milwaukee

Milwaukee County may be able to save the Villa Terrace Museum of Decorative Arts. However, the future of the Charles Allis Art Museum is less certain.

In recent years, the county has struggled to adequately fund them. Over the summer, the county received four proposals with ideas for new operations and uses that would reduce the county’s funding obligations, according to a report prepared by Erica CopaEconomic Development Project Manager in the county’s Department of Administrative Services.

Both public museums began as private residences and art collections. They were bequeathed to the county, directly or indirectly, during the second half of the 20th century. Since 2014, their management (and their fate) have been intertwined and are handled by a single nonprofit organization called Charles Allis and Villa Terrace, Inc.

The county retains ownership of the buildings and art collections, and is responsible for maintaining them.

However, the county’s financial struggles have led policymakers to underfund maintenance of the two institutions. In 2022, supervisors reduced funding for repairs at Charles Allis to fund other priorities in the following year’s budget. The following year, the board approved an amendment asking county administration to “explore opportunities to end ongoing county operational and capital support.”

Earlier this year, the board received a report outlining a menu of possible options for the future of the institutions, including selling them. County officials then put out a public call for ideas for the long-term operation of the two museums that would reduce or eliminate the county’s financial obligation.

Four entities submitted proposals: Bartolotta Restaurant Group, Dynamic Events, Charles Allis and Villa Terrace Inc., and the Friends of Villa Terrace.

The proposals

The county did not receive many new ideas for the two facilities, and those it did receive focused largely on Villa Terrace.

Bartolotta wants to buy Villa Terrace, for a price yet to be agreed upon, return the artwork to the county and host a restaurant and event center on the premises. He would allow periodic public access through guided tours on specific dates. The restaurant group is not interested in taking control of the Charles Allis or its art collection.

The Friends of Villa Terrace (FOVT) also proposed separating the two museums, with the friends group taking over Villa Terrace and maintaining it as a public museum and event space. FOVT is asking the county for $3 million in maintenance funds over five years and $125,000 over three years as it takes full responsibility for operations. The group would raise approximately $1.5 million to establish a $500,000 endowment and help with maintenance costs. The group is willing to consider taking over Charles Allis’ art collection, but not the building.

Dynamic Events, a Milwaukee-based events company, has proposed taking over both buildings, turning Charlies Allis into a boutique hotel and Villa Terrace into an event venue. But the company also wants a $4 million, 20-year loan from the county at 4% interest to do so. While Dynamic Events seeks to privatize the public institutions, the firm is also proposing a series of events and exhibits that would open them to the public, such as public access hours.

The current operator misunderstands the situation

Despite having operated the two museums for more than a decade, Charles Allis Villa Terrace, Inc. (CAVT) submitted the weakest response to the county’s open call for ideas. The nonprofit failed to address the primary reason county officials are interested in divesting from the museums: money, or the lack thereof.

CAVT proposed maintaining its current museum operations and requested $10 million from the county for maintenance and repairs and a gradual reduction of the $225,108 in annual operating support it receives from the county.

““While CAVT’s operations and experience were positive factors in the evaluation, the proposal did not address the request to reduce and/or eliminate dependence on county funding,” the county report stated. “Ultimately, this proposal received the lowest score due to the unrealistic capital request, the length of ongoing operating support, the lack of fundraising goals, and the lack of a clear end point for the county’s investment.”

After talks with county officials, CAVT revised its proposal, reducing the amount of maintenance and operational support it requested and signaling a willingness to split governance of the two museums, according to the county report.

In the past, the county tried to formalize an agreement with CAVT for the museum’s operation, but the nonprofit never agreed to sign anything. Now, the informal agreement leaves the nonprofit out of decision-making about the institutions it has run for the past 12 years.

Separation likely, future uncertain for Charles Allis

Given the limited responses received, county officials do not recommend opening a formal request for proposals. Instead, the report suggests that policymakers use the information already provided to make a decision.

County administration is recommending the board authorize officials to begin negotiating a transfer of Villa Terrace to FOVT. The group’s proposal received the highest score, preserving public access and reducing the county’s financial obligations. It also offers a possible solution for the Charles Allis art collection if the museum cannot be saved, the report said.

Read the county’s full report outlining all four proposals.