If you mention the Palace Theater, most people in the Twin Cities would assume you’re talking about the revamped 1916 theater in St. Paul. But Minneapolis had its own Palace (originally called the New Palace), one of the more intriguing, yet least known theaters, which stood for a mere 39 years at 4th Street and Hennepin Avenue S.
With 2,400 seats, the Palace was about the same size and every bit as lavish as the historic Orpheum and State theaters, which are still going strong.
But the Palace, built in 1914 as a vaudeville house, seems never to have been a great success. It was something of a dive by the time it succumbed to the wrecking ball in 1953. Before it fell on hard times, however, the Palace was considered one of the city’s most elegant theaters.
The theater was built on a piece of property, sometimes called Stewart Park, with its own fascinating history. In 1870 an eccentric lawyer named Levi Stewart acquired a large lot at the northwest corner of 4th and Hennepin and built a modest home in the center of it.
Not one to be molested by progress, Stewart remained in his house even as all the lots around him gave way to commercial development. By 1910, when Stewart died, his tree-filled property had the look of a park set amid Hennepin’s bustle.
The Palace went up on the south portion of Stewart’s old property. Not long afterward, a two-story commercial building (now home to the Gay 90’s nightclub) filled the rest of the site.
Built for the Finkelstein and Ruben movie circuit, which by 1914 operated at least a half-dozen theaters in the Twin Cities, the Palace cost about $600,000 and was designed by Chicago architect John Eberson, with the assistance of the St. Paul architectural firm of Buechner & Orth.
Eberson is best known today as the inventor of the so-called atmospheric theater, in which the auditorium gives the appearance of an outdoor courtyard beneath a night sky. More than 100 atmospheric theaters, including the Suburban World (originally Granada) in Minneapolis, were later built across the United States, mainly in the 1920s.