Called the New Palace upon opening on November 27, 1916, the theater was designed by Saint Paul architects Buechner & Orth in a Beaux-Arts style.

It made the transition from vaudeville to talkies, and was considered one of the city's two finest movie palaces – the other being the Paramount located directly across the street.

The building was dark for three decades and on the verge of condemnation before the City of Saint Paul purchased it in 2015, embarking on a $15 million rehabilitation meant to prepare the venue for concerts.

[6] Working with local Saint Paul firm Oertel Architects, the scope of the project was not a full historical restoration; instead they stabilized the structure and preserved what remained, adding new plumbing and mechanical systems but leaving "rough edges" throughout.

Seats on the main floor were removed to accommodate larger crowds in general admission and differentiate the Palace from other regional venues with similar capacities, including the Orpheum Theatre and Northrop Auditorium in Minneapolis.