In the 1960s, the Tel Aviv municipality decided to develop the city's northern beaches, and to build modern hotels along the coast.
It was decided to develop the square as a tourist center to connect the hotels, beaches and Sderot Ben-Gurion, and planned to include a main road parallel to the shore and parking lot.
The multi-purpose structure was built on a number of levels which exploited the difference in elevations between the cliff where the beach was.
In the northern part of the square lies another building which includes the Marina Hotel and several floors of shops.
During the Gulf War in 1991, Mayor Shlomo Lahat quipped that he hoped a Scud missile would destroy it.