It is believed that most of the coral stone blocks from the Parian church – which was demolished in 1878 after the Bishop of Cebu won a long-drawn court case against its parishioners in the 1850s – were used to build parts of the cárcel.

Records are not clear as to when the second storey of the main building was added, but the architectural design suggests this to be during the American colonial period.

During the early years of the American period, the gaol served as a stable for horses competing at the hipódromo (racetrack) nearby, but it was eventually used once again as a prison, both for the city and the province.

Following the transfer of CPDRC to a more spacious and modern prison complex in December 2004 the gaol was converted into Museo Sugbo, the repository of Cebuano heritage, a feat that was realised when the first four galleries of the museum were inaugurated on August 5, 2008.

Also inaugurated during this event was the Well of Good Fortune and Happiness on a Spanish-era well that was unearthed when the rear portion of the Museo Sugbo complex was being refurbished in 2009.