The Grand Hotel Palace has played a key role in the history of Lugano since 1855 until 1969 when it was finally closed. The building, because of its location and features, became of fundamental importance to the new strategies of the city of Lugano which purchased it in 1994.  The decision was then taken to designate the land surrounding the property to become the new cultural hub of the town by building a theatre and a museum.  A public auction was held - for the restoration and restructure of the existing historical building into luxury apartments – and won by the Lugano families of Mantegazza, Albek and Garzoni.  The restructuring of the private section of the project is foreseen to commence in 2006.