Villa Terrace, Charles Allis Museums Could Become Event Space, Hotel

Charles Allis Art Museum (top) Villa Terrace Decorative Arts Museum (bottom).

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

The county has struggled in recent years 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 Goblet, Economic Development Project Manager in the county’s Department of Administrative Services.

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

The county maintains ownership of the buildings and art collections, and the responsibility to maintain them.

However, the county’s financial distress has led policymakers to under fund the maintenance of the two institutions. In 2022, supervisors reduced funding for repairs at Charles Allis to fund other priorities in the next year’s budget. The following year, the board passed an amendment asking the county administration to “explore opportunities to terminate the County’s ongoing operational and capital support.”

A report went to the board earlier this year, outlining a menu of potential options for the future of the institutions, including selling them. Next, county officials released a public call seeking any ideas for the long-term operation of the two museums that would reduce or eliminate the county’s financial obligation.

Four entities offered 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 what they did receive was largely focused on Villa Terrace.

Bartolotta wants to buy Villa Terrace, for a price not yet agreed upon, return the art to the county, and run a dining and events operation out of the facility. It would allow periodic public access through 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) is also proposed separating the two museums, with the friends group assuming responsibility for the Villa Terrace and maintaining it as a public museum and event space. FOVT is asking the county for $3 million in funding for maintenance over five years and $125,000 over three years as it assumes full responsibility for operations. The group would fundraise approximately $1.5 million to set up a $500,000 endowment and assist with maintenance costs. The group is willing to consider taking control of the Charles Allis art collection, but not the building.

Dynamic Events, a Milwaukee-based events company, proposed taking over both buildings, turning the 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 it. While Dynamic Events seeks to privatize the public institutions, the firm also proposes a number of events and exhibitions that would open them up to the public, as public access hours.

Current Operator Misreads the Situation

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

CAVT proposed maintaining its current operations at the museums 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 was unresponsive to the request to reduce and/or eliminate reliance on County funding,” the county report stated. “Ultimately this proposal received the lowest score due to the unrealistic capital request, the length of continued operational support, lack of fundraising goals, and no clear end to the County’s investment.”

After conversations with county officials, CAVT revised its proposal, reducing the amount of maintenance and operational support it was asking for and showing a willingness to split up the governance of the two museums, according to the county report.

In the past, the county attempted to formalize an agreement with CAVT for the operation of the museum. But the nonprofit never agreed to sign onto anything. Now, the informal arrangement leaves the nonprofit cut out of decision-making for the institutions it has run for the past 12 years.

Separation Likely, Future of Charles Allis Uncertain

With few responses, county officials are not recommending opening up a formal request for proposals. Instead, the report suggests policymakers use the information already provided to make a decision.

The county administration is recommending the board authorize officials to begin negotiating a transfer of Villa Terrace to FOVT. The group’s proposal scored the strongest, preserving public access and reducing the county’s financial obligations. It also provides a potential solution for the Charles Allis art collection if the museum cannot be saved, according to the report.

Read the full county report outlining the four proposals.

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