At the end of the 19th century, Freiburg's Head Mayor Otto Winterer was especially interested in culture. He served as chairman of the city's theatre commission and initiated the new building of the Stadttheaters (City Theatre). The contract was given in 1902 to the Berlin architect Heinrich Seeling, after the people involved agreed upon a building site. (Karlsplatz was one of many sites discussed.) Eventually, the location of the former bastion "Dauphin", and at that time, site of the "Villa Platenius", was selected. Ground was broken in 1905, but the excavations quickly ran into problems because the previous fortress land proved difficult and expensive to work. The construction costs ran to approximately 3.4 million mark.

The City Theatre could finally open on October 8, 1920. Performances included the festival scene from Wagners "Die Meistersinger von Nürnberg".

The City Theater was built in the New Baroque style on the former bastion's highest point. The front entryway, composed of five curved segments, connects to the surrounding area through ramps and a stone stairway. The interior was richly decorated with ceiling murals, wrought iron grilles, bronze lamps, and ornamental Jugendstil (Art Nouveau) stucco. Unfortunately these became the victim of a renovation in 1939 and World War II. After the city bombing in 1944, only the outside walls and the magnificent built-in wall fountains remained standing.

The City Theatre was rebuilt along simplified lines in 1949. The large foyer with its loggia over the entrance hall was left out and the terraces were used to make place for the "Kurbel" cinema and local shops.

In 1962, the previously intact main front gable and south stairwell were torn down as part of a structural changes in the roof.

The City Theatre underwent a general renovation in 1973. Then in 1996, a more comprehensive renovation began. During this time, the Theatre was closed and its grounds turned into a huge construction site. The City Theatre reopened to the public almost two years later.