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ruction began on the steel work for the building which was on Grand Avenue between Second and Third streets. The Milwaukee Sentinel reported that the building would be nearly fireproof and the cost of fireproofing was US$10,000 (equivalent to $327,000 in 2023). One of the advertising claims was that the air in the theater was "completely changed every 3 minutes". One reason some theater-goers feared stagnant air was the concern about tuberculosis. In America tuberculosis was also known by the name "consumption" and it was the disease that killed more people than any other from 1800 to 1922 in urban areas.

Admission to the theater was 10 cents (equivalent to $3 in 2023) and the theater had a 1,500-seat capacity. At the time, theaters regularly charged a nickel for admittance, but the Butterfly kept their price at 10 cents. During World War I the Butterfly raised their price to 25 cents (equivalent to $5 in 2023).

The architect of record was August Willmanns. Willmanns selected theater embellishments and decorative plaster items pre-made from a catalogue. At the time many businesses offered interior decorative plaster pieces and ready-made building facades. The building cost was US$200,000 (equivalent to $6,540,000 in 2023). The theater hired a doorman who said he was Oscar award–winning actor and boxer Victor McLaglen, but he was an imposter. Victor McLaglen exposed the man as a fraud and revealed that the man was actually his brother Leopold McLaglen.

In 1929 a film in the projection room of the theater caught fire. The movie patrons had to evacuate as smoke was seen coming out of the windows. The film operator preve