Michael's father, Joe Jackson, along with Gary officials announced plans for the facility which could potentially bring an estimated $100-$150 million, as well as new jobs, to the city.
Jackson visited Gary in 2003 to announce plans for the museum, yet nothing ever materialized before his death last year at the age of 50.
"This is a happy day for me because this is something that my family and Michael have always wanted," Joe Jackson said. "We're bringing something back."
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