The palace was situated behind the Brama Krakowska (Krakow Gate) in Wielkie Przedmieście, next to the Austrian imperial route from Vienna through Krakow to Lviv. In the first years it was a magnate seat. At the beginning of the 19th century, the son of prince Eustachy Sanguszko sold the building to the Austrian authorities, which in 1825 placed the seat of a district there. In 1846, during the Galician uprising, the peasant leader Jakub Szela talked in the palace with starost Józef Breinl, while the victims of the slaughter were sacrificed next to the building. Later, the palace was one of the most important public buildings for a long time, after the district, from 1867, it was the seat of the powiat starost office. It has been in private hands since 2005, and is currently empty and undeveloped.
A baroque, two-story palace from the 18th century, in the 19th century it was rebuilt in the spirit of classicism, with a multi-axis facade with a spacious hall in the centre. After 1870, it was expanded, which disrupted the classicist appearance. In 1900, it was rebuilt in the neo-baroque style. In the 20th century, the Austrian authorities gave it a uniform character, corresponding to the aesthetics of that time, designed by Szczęsny Zaręba, the director of municipal construction in Tarnów. Today it is a three-winged, three-story building topped with a triangular pediment with two gates.