Harley to build $95 million museum, offices
9:15 PM 1/21/04
Xiao Zhang Associated Press

MILWAUKEE - Harley-Davidson will build a $95 million motorcycle museum, restaurant and offices on 20 acres of land in the Menomonee Valley, the company announced Wednesday. <

The Milwaukee-based motorcycle manufacturer decided to move ahead with its plan of a $60 million museum after receiving approval Wednesday from the Menomonee Valley Business Partners. <

"This is going to be a destination," said Jeff Bleustein, company chairman and chief executive. He said the museum, expected to open by the end of 2007, will become "one of Milwaukee's gems." <

The 90,000-square-foot museum and other developments are still in conception stage until the company receives further approvals from the city of Milwaukee, said Lara Lee, company vice president. <

The city will need to move a Department of Public Works maintenance facility and work out various agreements - from land sales to tax increment - with Harley, said Greg Shelko, assistant director of Milwaukee's Redevelopment Authority. <

It would cost the city $12 million to $18 million to relocate the maintenance facility, Acting Milwaukee Mayor Marvin Pratt said. The city is expected to move the public works facility by January 2006. Construction for the museum would take about two years, Lee said. <

Pratt praised the company's development plan and said he expected the Common Council to act on the issue within the next month. <

"I'm thrilled and pleased with the expansion," he said. <

He expects the museum to create jobs and bring in tax dollars from a projected 350,000 visitors annually. Building the museum will create 500 construction jobs and the museum will employ at least 70 full-time workers when in operation, Lee said. <

Other development at the proposed site includes a restaurant and restoration of the company's archive, including items from a collection of motorcycles to vintage clothing pins to the company's first tax return. The company also has plans for office space and commercial development. <

Motorcycles will be parked along the streets on the site, surrounded by the Menomonee River, and visitors will be able to peek through glass display windows at the street level, Lee said. <

Harley-Davidson has been considering building a museum for several years. In November 2002, Harley dropped plans to develop it at the former Jos. Schlitz Brewing Co. brew house in downtown Milwaukee, after renovation cost estimates at the 1890 building jumped to $52 million from $24 million. <

"Harley's always made priorities to be a good neighbor and a good citizen," Bleustein said. <

Harley-Davidson also reported Wednesday record revenue and earnings for its fourth quarter and all of 2003. Earnings per share were 60 cents compared with 49 cents in the same period a year earlier. <

It was the 18th consecutive record year for the company, which celebrated its 100th anniversary in 2003, Bleustein said. <

Harley-Davidson motorcycle shipments for last year were about 291,000 - up about 10 percent from 2002. <