Board Approves Villa Terrace, Charles Allis Privatization, With Extra Protection

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

The Milwaukee County Board voted to add an extra layer of public oversight as two publicly held museums are set on a path to eventual privatization.

County officials have spent the past year working out a plan to eventually sever public ownership and financial ties of the Charles Allis Art Museum and the Villa Terrace Decorative Arts Museum. The museums, and their collections, are currently owned by the county. They have both been operated by a single entity since 2012: Charles Allis Villa Terrace, Inc. (CAVT).

Under a deal approved by the board Thursday, the county will separate the museums and transfer Villa Terrace to the Friends of Villa Terrace and the Charles Allis to CAVT.

During the board’s meeting Thursday, Sup. Justin Bielinski introduced an amendment, requesting the administration add a provision to the final agreement giving the board final approval over any future sale of the buildings.

“I understand that this is happening, that we are divesting from these cultural assets,” Bielinski said. “But I also believe that we have a responsibility as an elected body to do what we can to protect public access.”

The Friends of Villa Terrace will be given a three-year lease and a $1 option to purchase. The current nonprofit operator, CAVT, will be given a similar one-year lease with an option to purchase. If CAVT does not exercise its option to purchase in 2026, the building and collection will be transferred to the Friends of Villa Terrace, which will sell the building and use the proceeds to maintain the collection.

“I want to make sure that it comes back to the board before a future sale comes to some private developer, and then we get some junk condos on that land, or something like that,” Bielinski said. 

The amendment was adopted unanimously by the board.

If at any time the friends group does not maintain public access, or sells to an entity that does not, it will have to pay the county the fair market value for the property.

Under the deal, both museums will see their county financial support continue until 2028. And if they exercise their options to purchase the county will provide funding for maintenance, as Urban Milwaukee has previously reported.

The friends group has already begun a capital campaign to raise $1.2 million for maintenance and $500,000 for a reserve fund, as required by the deal.

The county has set revenue goals over the coming years to continue receiving operational support from the county. CAVT has proven less prepared than the Villa Terrace group to take over the museum, telling supervisors the organization must rebuild its board to focus on fundraising.

In 2023, the county began to re-evaluate its relationship to the museums after years of failing to properly budget for their maintenance. It’s estimated the two buildings will need approximately $18 million in maintenance over the next 20 years. The board added an amendment to the 2024 budget asking for potential ways to break the museums off from the county.

With board approval, both nonprofits will assume control of the properties through their initial lease on Jan. 1, 2025.

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