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Blue ribbon rebirth
Developers brew big plans for Pabst property

By CATHY BREITENBUCHER

March 29, 2007

At its height, Pabst Brewing Co. employed nearly 4,000 people. The neighborhood teemed with life as workers produced beer for shipment around the country, and tourists walked through the complex and sipped samples in a beer garden where a statue of Captain Frederick Pabst kept watch.

Today, the 20-plus acre Pabst property stands ready for rebirth under the guidance of real estate investor Joseph J. Zilber as a residential, office and retail center known as The Brewery.

"We’re talking to someone on almost every piece of property, and on some we have two or three interested parties," says Michael P. Mervis, assistant to Zilber. "This has the possibility to spread west of the freeway and drive economic development in the inner city. There is a lot riding on this project."

The redevelopment is expected to take five years. Restoration of sewer, gas and electrical service, and limited demolition was jump-started in December when $29 million in city financial assistance was approved. Work to clean and gut the remaining buildings will take about a year.

And work it is. Since being shuttered in 1996, the brewery has fallen into disrepair. Weeds poke through the brick streets and along the sides of buildings. Fences keep passers-by safely away from areas where brick could fall. Vandals have broken dozens of windows.

And those are only the problems on the outside. Some buildings have hidden structural problems, house below-grade petroleum tanks or contain asbestos. Leaks in the roof have led to piles of fallen plaster in the massive meeting hall adjacent to the former board room; like many parts of the brewery, the hall had been repeatedly spruced up with lead-based paint.

"The people who are looking at buildings are looking at them with their dream, their vision," says Mervis. "We are providing to them a building that is clean and with all the internal walls demolished. The new owner walks in with a fresh palette."

So what will The Brewery eventually look like? For starters, buildings and structures with no historical value are destined to be torn down, providing green space or additional building sites. Among the first to go will be the white tank with the Pabst logo, visible from I-43. The Pabst smokestack also will come down, due to structural problems.

Already, TMB Development Co. and Dermond Associates, two Milwaukee property developers, have announced a joint venture to buy the 1890 former engineering and maintenance building on 10th Street and McKinley Avenue. Office space should be ready for lease by June 2008.

"There could be any number of office users who appreciate it as a new neighborhood," says TMB partner Charles Trainer. "It has windows on all four sides, and wonderful timbers, columns and wood floors."

Also, a tentative agreement has been reached to create 90 apartments in the 1911 three-story former keg house and garage, which overlooks Winnebago Street. Johnson Controls is said to be interested in the former bottling building on 10th Street, which was built in stages from 1889 to 1911, as a training center.

The grain elevator, another landmark to I-43 commuters, could be the site of an artificial waterfall or an indoor climbing wall. There’s talk of a restaurant atop the soaring structure — from there, on a clear day, you can see Holy Hill.

Another investor owns Pabst’s former Blue Ribbon Hall, offices and gift shop, and Mervis expects him to work closely with Zilber Ltd., possibly creating a brew pub, inn and beer museum in those historic buildings.

Remaining buildings could house restaurants, offices, condos, perhaps a hotel and maybe even a house of worship — the 1858 German Methodist church hugs the western edge of the property. Tenth Street and Juneau Avenue are expected to become the major retail streets.

"We’ll try to save the original street paver bricks, which had come over as ballast in ships of hops from Europe," adds Mervis.

Throughout the property, there are old-world architectural features such as leaded glass windows, extensive woodwork including massive doors, pressed-tin and vaulted ceilings, and winding staircases.

The Pabst sign that currently stretches four stories above Juneau Avenue could stay, although it may be moved within the complex if the buildings supporting it prove to be problematic. Another unique feature Mervis hopes can be showcased is a three-story stained glass window in one building depicting the "Goddess of Brewing;" it’s currently sheathed in plywood and bulletproof glass.

"I’m hoping they can save roughly two-thirds of the historic buildings, and when it’s finished, it will fit in with the rest of the city, not be an enclave," says 3rd District Alderman Michael D’Amato.

Mervis anticipates 300 to 400 housing units; 200,000 to 300,000 square feet of office space; 150,000 to 200,000 square feet of retail space and more. Parking will be ample throughout the development, including a possible ramp retrofitted into an 1870 structure.

In addition, The Brewery will be as "green" as possible, for instance capturing all storm water to relieve pressure on the sewer system.

Trainer says he’d like his building to successfully combine historic rehabilitation requirements and "green" technology. "It’s a delicate task," he adds.

In the end, The Brewery’s value will be $205 million, according to city estimates. Property taxes on the improved parcels will pay back the city’s loan plus $12.5 million in interest in 21 years.

Officials say the project is an important bookend to the Park East corridor redevelopment.

"If you could walk west from Brady Street to the freeway without a single interruption in the streetscape — no vacant lots or parking lots — then we will have quality development," says D’Amato.

Zilber Ltd. purchased the property last summer for $7.6 million from developers whose PabstCity plan — centered around a House of Blues restaurant/nightclub and a cineplex — ran into opposition from operators of several downtown entertainment venues. This time, the city’s tax incremental financing (TIF) sailed through committees and was approved unanimously by the Milwaukee Common Council.

Zilber, 89, has said he considers The Brewery project as his legacy to the city, where he began a home-building and commercial real estate company just after World War II.

"I view this as a significant contribution by an individual who is giving something back, and that needs to be recognized and applauded," says Alderman Robert J. Bauman, whose 4th District includes the Pabst site. "He says, ‘Damn the risk, I’m going to do this because I owe it to the community.’"