Stacy Wescoe//June 3, 2025//
It all started back in 1984 with the first Musikfest, planned to be an annual music and cultural festival to drive tourism into Bethlehem.
Today ArtsQuest, the organization that runs Musikfest, has grown into a year-round, multi-campus cultural center that boasts an annual economic impact to the Lehigh Valley of $136 million a year.
Now, with two major construction projects on the way, ArtsQuest stands to become an even bigger contributor to the region’s economy and culture.
Demolition work has already begun on the old Banana Factory, a building that housed classrooms, studios, maker spaces and exhibition spaces in South Bethlehem. The Banana Factory was established in 1998, stitched together from six buildings that had been used as an actual banana factory in its past.
Kassie Hilgert, president and CEO of ArtsQuest, said the space had simply become too small to meet the demand.
“Our growth is a mirror of the community’s growth,” Hilgert said. “We try to anticipate and reflect the community as it changes.
The Banana Factory will be replaced by the ArtsQuest Creative Factory powered by PPL, a 5-story, 78,500-square-foot cultural center designed by MKSD Architects of Allentown.
Todd Chambers, lead architect on the project, said the new arts center has been in the planning stages for about ten years, as MKSD and ArtsQuest worked with the city on how to best meet the needs of the community.
He said the original plan was to maintain the original Banana Factory structure, but as construction costs began to skyrocket, they were able to get the city to understand the issues with their budget and why demolition was the best plan.
He said the design they came up with greatly increases the mission-based programming that will be offered at the center.
He noted that there will be 36 artist studios, 11 classrooms, maker space and gallery space.
“One of the barriers to growth at Banana factory was the limited classroom space for different art forms like jewelry making and clay work,” Chambers said.
The new center will not only have additional space for those sorts of classes, but will also have technology spaces, a social media lab, recording studio and performance spaces including a multipurpose theater.
The design of the building, which is expected to be completed late next year, is also meant to engage the community around it.
There will be large, street-facing windows in the classroom space.
“It enhances the connection between the space and the street, so you can see people taking art classes,” Chambers said.
He said the MKSD also designed the building to reflect the handmade aspect of the arts that will be taught and created in the building.
Bricks will be varied in color and tone and will be installed in a “less than perfect” way to enhance the handmade look.
Hilgert said while there has been great community support to construct the new building, ArtsQuest is still raising money to fund it.
To date, $25.73 million has been raised toward the new building with an estimated cost of $32 million.
She called it a great addition for everyone in the community.
“The ArtsQuest Creative Factory powered by PPL will be an inviting building with free galleries and community spaces open to the public seven days a week and will include bilingual directional signage in Spanish,” Hilgert said. “It will be ADA-accessible and built with more energy-efficient features and sustainable materials incorporated throughout.”
But wait, that’s not all.
While a construction project of that size is an enormous undertaking on its own. ArtsQuest is also embarking on a second major construction project, to expand its space on its anchor South Side Bethlehem SteelStacks campus.

The Turn & Grind Shop, a 150-year-old building that was once a key part of the steel-making process at the Bethlehem Steel Corporation, was donated to ArtsQuest by the Bethlehem Sands, now Wind Creek, several years ago.
The organization has been using the building mostly for storage space to hold equipment for such events as Musikfest and Octoberfest when not in use.
The building will undergo extensive renovations with plans to open in 2027.
According to Hilgert, instead of just being storage for events, it will expand the footprint for ArtsQuest programming such as Musikfest, Christkindlmarkt and Oktoberfest and provide unique and much-needed event space for private and corporate needs as well as an additional home for traveling exhibits.
Chambers said that project is a little less complicated than the Creative Factory. The building is mostly a wide-open space right now.
“It’s really about cleaning it up and creating spaces,” he said. “It’s very cool old architecture, but we’re tightening it up and making it air conditioned.
They’ll also be adding amenities like a commercial kitchen to serve food to guests that will attend events there.
He said the biggest challenge to that construction project, which like the Creative Factory will be managed by Boyle Construction, is the fact that the area around it is so busy.
Construction will likely be impacted when events like Musikfest and Octoberfest are being held.
“There’s a lot happening around this building,” Chambers said.
Hilgert said it’s a much-needed addition to the ArtsQuest Center, which is on the same SteelStacks campus and is often fully scheduled.
When opened, it will be known as the LVHN Turn & Grind Shop.
The project is expected to cost between $12 and $16 million.