Can City Find a Developer For Historic Schlitz Tavern?
Officials try again with classic Riverwest building. Will the third time be the charm?
Humboldt Gardens building at 2249 N. Humboldt Ave. before the southern addition was demolished. Photo by Jeramey Jannene.
The City of Milwaukee is seeking a savior.
Entering the second decade of its ownership of the historic Humboldt Gardens tavern building, and having seen two redevelopment proposals fail to materialize, the city is again soliciting offers to redevelop the structure.
After several years of granting contractor Clarence Morse exclusive authority to redevelop the three-story building into a food hall, the Department of City Development (DCD) is seeking a new developer to save the deteriorating Riverwest landmark at 2249 N. Humboldt Ave. The building anchors a prominent and busy intersection at E. North Avenue.
The city has listed the property for $5,000 and will accept proposals on a continuous basis until it receives one it is prepared to approve. Morse, should he raise the funds to finance his proposal, is still eligible to purchase the property.
DCD is warning prospective buyers to expect a substantial and potentially costly rehabilitation.
Most of the building, built in 1891 as a tied house for the Joseph Schlitz Brewing Company, cannot be safely toured. Visitors are limited to the foyer and must sign a liability waiver. The basement, upper floors and most of the first floor are inaccessible because of safety concerns.
Prospective purchasers are advised to assume that the floor framing, stairs, roof structure and other wood components have significantly deteriorated and that all mechanical equipment and building systems will need to be replaced. The city strongly recommends bringing a structural engineer and qualified contractors to any showing.
The property is locally designated as historic, requiring any buyer to restore the exterior under guidelines enforced by the Historic Preservation Commission.
The listing says the property could accommodate a restaurant, cafe, retail business, office, food-service operation or residential use, though some proposals could require Board of Zoning Appeals approval. The property must remain on the tax roll.
A buyer would have 18 months after closing to complete the renovation and obtain a certificate of occupancy. The sale would also include performance restrictions and a provision allowing the city to reclaim the property if the developer fails to comply. A performance deposit of up to $10,000 could be required.
Proposals will be evaluated based on price, the proposed use, neighborhood impact, financial viability and the developer’s experience renovating historic buildings. Applicants must provide a detailed scope of work, financing plan, project schedule, neighborhood outreach plan, and examples of completed renovations.
The city acquired the building through property tax foreclosure in 2015 from Damian Zak. In 2018, it selected developers Kyle Mack and Todd Hutchison to convert the building into three condominiums.
That $1.2 million proposal collapsed the following year amid financing and parking challenges. The developers had secured an option to purchase the property for $58,500 but never closed on the sale.
In 2019, the city demolished a 375-square-foot south addition after part of the structure failed. At the time, officials were already warning about major water infiltration. A hole in the roof had allowed water to pour through the building, creating thick ice on the stairs and first floor in winter.
Morse, who had also submitted a proposal during the 2018 bidding process, resurfaced as a prospective buyer in 2021.
His firm, Dark Horse Development, proposed transforming the building into an indoor-outdoor food business hub. The first floor would contain a bar and seating area, the basement would house a commercial kitchen and the upper floors would become offices. A courtyard and vendor spaces were planned for the south side of the building.
The Historic Preservation Commission enthusiastically endorsed the concept in 2022 and approved a design in 2023. In early 2024, the Common Council approved the sale of the property to Morse for $1, reflecting the difficulty and expense of the rehabilitation.
Morse continued advancing the project into 2025. Last June, he pitched members of the Fund Milwaukee community investment group on providing $100,000 in loans for what had grown into an estimated $1.5 million development.
The plan called for six turnkey vending trailers, a full-service bar, office space and a commercial kitchen, with future phases adding more food vendors and outdoor seating. Morse anticipated opening the first phase in June 2026.
But he never raised sufficient funds to purchase the property.
The building was designed by Charles Kirchhoff Jr., whose firm designed numerous buildings for Schlitz and the Uihlein family. It has housed a succession of taverns and clubs, including Zak’s North Ave., Spruce Goose, Kilroy’s Tavern and Hot Spot.
The building was included on a city list of Milwaukee’s 10 most endangered historic buildings in 2000. Historic Preservation Commission staff previously described it as the only building from that list that has neither been rehabilitated nor demolished.
A second Kirchhoff-designed building is in danger of demolition. The building at 2673-2679 N. Martin Luther King Jr. Dr. could be demolished if no buyer is found.
2019 Photos
Renderings
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