The Marcus Performing Arts Center told the Milwaukee County Committee on Finance and Budget on Oct. 12 that it continues to carry a roughly $2.7 million debt from earlier capital work on its adjacent parking structure and is seeking short-term help while city-led redevelopment talks proceed.

Marcus CFO Katie Dillo said the center refinanced the debt about a year and a half ago and that respondents to a city request for proposals had included the outstanding debt in their purchase prices, but that the redevelopment process is stalled. "It is bank debt. We did refinance it with MEDC, about a year and a half ago," Dillo said. "So that's significantly helped us in terms of more favorable payment terms that reduced our annual debt service."

The Marcus leaders told the committee they are focusing on immediate safety and operational needs for the structure while long-range redevelopment is unresolved. "We are right now focusing on the immediate needs, which is about a $190,000 in concrete in the structure, plus an additional amount to get an elevator operating — an elevator that is original equipment to the 1969 parking structure," Dillo said. She said elevator repairs could range from about $35,000 to $70,000 to return both elevators to service.

Marcus executive staff said the center and the city have a long-standing lease and that the city owns the land while the center owns the structure. Kevin (Marcus), who joined Dillo in testimony, described decades of intermittent repair and reinvestment, saying the possibility of redevelopment repeatedly discouraged long-term structural investments by prior partners. "There has been a desire to redevelop that site. A number of different proposals have been submitted over time," he said. He added that the center is engaged in ongoing conversations with the City of Milwaukee Department of City Development and the mayor's office about interim help for critical repairs.

The Marcus Center emphasized the repairs are not a request for immediate repayment of the full $2.7 million, but for help covering near-term capital and elevator reliability so operations remain safe while redevelopment is negotiated. Committee members and Marcus staff discussed whether city council members would ultimately carry obligations to repay or cover repairs; Marcus staff said legal counsel and written documentation support their position that the city owes some responsibility, but the matter is unsettled.

The center also reiterated the operating and economic importance of the Marcus Center to the region and thanked the county for recent capital investments and a lease amendment that cover much of the building's infrastructure needs.

Marcus staff did not present a formal motion or ask the committee to vote on a county appropriation during the hearing. Marcus staff said conversations with the city and potential purchasers of the site are ongoing and did not announce a timeline for a final resolution.

What’s next: Marcus staff said work will continue with city officials and council members to find an interim funding approach for the immediate repairs; neither the city nor the county announced a commitment during the committee meeting.