Maybe I'm wrong and "bad art" doesn't necessarily amount to "ugly art," but based on the collection this odd museum has, and on their description of some of the pieces, the two concepts seem to be synonymous for the most part in this case. Though I don't doubt that there is probably a horrible piece of artwork out there that someone thinks is beautiful.
The question that was really on my mind is why anyone would put so much effort into publicizing something they think is bad. It can be argued that one does need to experience bad art to truly appreciate good art, but I don't get the feeling that this is the goal the founders of this museum were striving for. Their "about" section on their website is disappointingly vague, and I am left believing that perhaps the founders really did go through all this trouble just to be snobbish, and have a few chuckles while they were at it.