Museum
rescue includes reneging on commitment to buy Discovery
World building
July
21, 2006 -- The rescue plan for the Milwaukee
Public Museum calls for the institution to renege on its
obligation to buy the old Discovery World building unless
the landlord donates $5.5 million of the $6 million purchase
price, documents show.
The
full purchase price "is not feasible," according to the
rescue
plan.
"The
purchase price of $6 million is significantly more than
the museum can afford," it said. "The building would require
an additional $4 million in capital improvements to build
out the space and make it usable or MPM purposes. There
is no economic need on the part of MPM to acquire the
space."
The
Museum is obligated under its agreement with Discovery
World to buy the building, according to the rescue plan.
A
new Discovery World at Pier Wisconsin on the lakefront
will open to the public in September. Christine Rodriguez,
president of the corporation building the facility, has
said the $6 million from the sale of the old facility
adjacent to the museum would help pay for the new one,
according to the Milwaukee
Journal Sentinel.
County
Supervisor Lynne DeBruin, chair of the County Board's
Parks Committee, said Thursday she did not know if museum
officials had contacted the Discovery World Board or Michael
Cudahy, its co-chair. Cudahy was a major donor to the
original Discovery World, which opened in 1997.
storyhill.net
is seeking a response from Discovery World officials to
the rescue plan proposal.
The
rescue plan proposed two alternatives that would allow
the museum to shed its Discovery World obligation. Under
the first, Discovery World simply allows the museum to
walk away from the deal.
"MPM
is released from its obligation to purchase the property
and the owner keeps the building and is free to sell it
to another buyer to realize its value," the document said.
Under
the second scenario, Discovery World gives the Museum
$5.5 million, and the museum buys the old Discovery World
for $6 million.
"As part of this alternative, the building would be named
after the donor / seller," according to the rescue plan.
"In addition, Milwaukee County would cede its interest
in the land under the building to MPM."
The
building would be "mothballed" until the museum "was financially
and technically capable of expanding into the space,"
the plan said.
The
second alternative would be preferable because the museum
would retain control of the space. "However, the board
also recognized that the economic needs of the building's
owner may make this alternative unacceptable to him,"
the plan said.
DeBruin
said there is a third option not listed in the plan --
the museum could walk away from the purchase without Discovery
World's agreement.
The
rescue plan, which has been sharply criticized by county
supervisors, also calls for the county to increase its
financial contributions while turning over all the museum's
assets -- which the county owns -- to the museum for free.
Banks would be required to forgive loans.
