Historic Milwaukee theater, which once hosted U2, Tom Petty and strippers, could be an all-ages music club

Tom Daykin | Milwaukee Journal Sentinel

Show Caption Hide Caption Land and Space: All-ages music club in the works for Milwaukee's former Palms tavern The historic former State Theater on Milwaukee's near west side could become an all-ages music venue — something its backers say the city badly needs.

The former State Theater has been reinvented several times since opening in 1915: cinema, ballroom dance club, live rock music venue and exotic dance joint.

Now, after being vacant for nearly 30 years, the building on Milwaukee's near west side could become an all-ages music venue — something its backers say the city badly needs.

That development, dubbed The New State, would combine a nonprofit arts group to help young people learn about the music business with for-profit businesses: sound engineering studios, a store to sell T-shirts and other musician-branded merchandise, and the all-ages performance venue.

The New State would add to the growing number of near west side developments, revive a historic building and provide a fun activity, and possible jobs, for young people interested in music, said developer John Hennessy, who's helping lead the project.

"I've never worked on a project that seems to hit so many buttons," said Hennessy, whose developments include a nearby renovated building that features Daddy's Soul Food and Grille among its tenants.

The New State faces challenges, including raising an initial pool of cash to buy the fire-damaged building from the city before securing around $3.5 million to revive it.

Efforts to redevelop the building, at 2612 W. State St., are occurring as other projects are happening along nearby North 27th Street between West Wisconsin Avenue and West Highland Boulevard.

"It's all starting to come together," said neighborhood resident Allyson Nemec, who operates Quorum Architects Inc., 3112 W. Highland Blvd., and is involved in The New State project.

The two-story, 10,000-square-foot building hosted a movie theater for more than 30 years.

In 1948, it became home to the Friendship Club (also known as the Lonesome Club), where men and women, decked out in their finest attire, did ballroom dancing to a big band orchestra.

As the popularity of ballroom dancing declined over the decades, the club fell on hard times.

Its business was revived in 1975 under new owners, who booked rock bands at what was called the Electric Ballroom. By 1979, with another group of owners, it was renamed the Palms.

Before the Palms closed in 1984, it hosted acts such as U2, Joan Jett, The Police, B-52s and Tom Petty — often before they were big stars.

Perhaps the most notorious show was a 1981 concert by the Plasmatics, a punk band led by singer Wendy O. Williams. Her "sexual gestures" led police to arrest Williams, according to newspaper accounts.

A jury later found Williams not guilty of obstructing a police officer, and other charges were dismissed.

After the Palms closed, a new group surfaced in 1986 to open Hoops.

City officials thought they were getting a sports bar. Instead, Hoops was a strip club.

Angry Common Council members, saying they had been duped, tried to close the club. A judge overruled those efforts.

Hoops shut down in 1991 after the council refused to renew its licenses. Neighborhood residents said Hoops attracted prostitutes, created traffic congestion and attracted patrons who frequently got into fights.

The building has since been dormant — resurfacing in the news last year after a fire caused significant damage.

Meanwhile, The New State group began working on its redevelopment plans.

Part of the building would house a new nonprofit group, West Side Arts Un, Limited, led by near west side resident and business operator Andrew Parker.

That group would help young people with composing, recording and performing music, with a focus on hip-hop and electronica, said Parker, who operates Manderley Bed and Breakfast, 3026 W. Wells St.

Additional space would be leased to Mammyth Audio, a recording studio operated by Charles Forsberg, and Unifi Records, owned by Dimi Pochtarev.

The building would include a consignment store for musicians to sell merchandise.

Finally, The New State would host an all-ages, alcohol-free performance venue for musicians — including those honing their craft through West Side Arts Un, Limited.

The 400-seat venue's operators would include Janice Vogt and hip-hop performer WebsterX (born Sam Ahmed).

They're among the co-founders of Freespace, an all-ages music venue that since 2015 has staged around 10 annual young musicians showcases, and other events, at the Jazz Gallery Center for the Arts, 926 E. Center St.

Freespace is a do-it-yourself operation "and a community centered around love, music and empowerment," Vogt said.

But Freespace shares its current home, in the Riverwest neighborhood, with other groups and relies on volunteers. That limits its operations, she said.

At The New State, Freespace could double the number of shows and provide additional programs for young musicians, Vogt said. It would be a much larger space than the Riverwest site, which seats up to 50 people.

Also, its central location near bus lines would improve access for youth from throughout Milwaukee.

The New State all-ages venue would be a for-profit business, Vogt said, but would "maintain the lowest entry prices possible ... while ensuring the artists and musicians performing are not shorted."

All-ages venues play an important role in city life, she said.

"Music is a vital force in our hearts and societies," Vogt said. "Youth in particular have the right to, and should have access to, spaces to shape their culture."

Milwaukee does have places, including The Miramar Theater, The Rave and The Pabst Theater Group venues, where people under 21 can hear music, she said.

The New State would give young people "their own stage, space and voice by offering music resources, support and opportunity," Vogt said.

The New State also would help young people who hope to have a career in music, she said.

Venues such as The New State are needed "for creative communities to thrive," said Kelsey Kaufmann, general manager at the Cactus Club, a Bay View tavern that features live music.

"The city lacks opportunities for young bands and performers," Kaufmann said.

But it's going to take a lot of money to make the idea a reality.

Hennessy said the backers initially are raising $250,000 to buy the building and stabilize it. The city acquired the building in 2000 through property tax foreclosure.

While a sale isn't yet being negotiated, Department of City Development officials hope The New State backers can secure funds to buy and revive the building, said Jeff Fleming, a department spokesman.

The project would need an estimate $2.5 million for renovations and another $1 million to support West Side Arts Un, Limited, Hennessy said.

The renovation costs aren't unusually high, he said. Aside from the roof, the fire damage wasn't as extensive as initially feared.

Much of the money would be raised through individual donations and foundation grants, Hennessy said.

The New State also plans to seek state and federal historic preservation tax credits, said Nemec, the project architect.

The development would be about a half-block east of North 27th Street, which Hennessy considers "the downtown of the near west side."

Other nearby developments include Ambassador Hotel owner Rick Wiegand's conversion of the former Wisconsin Avenue School, 2708 W. Wisconsin Ave., into the 23-suite extended-stay Ambassador Suites hotel.

Also, a 2.3-acre site south of West Wisconsin Avenue and west of North 27th Street could be developed into two state office buildings — a $140 million investment.

"The near west side needs a central business district again," Hennessy said. "It needs a place like that to kind of complete the neighborhood."

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.