Pop legend Michael Jackson's father Joe has signed a deal to create a $300 million worth museum dedicated to his late son in Gary, Indiana.

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Joe has spent the past decade trying to get the project off the ground and now says the work on the museum and arts centre will begin in 2011.

"This is a happy day for me because this is something that my family and Michael have always wanted. We're bringing something back (to the city)," said Joe Wednesday.