The Gazzoli property was not insignificant in the 1700s, seeing as it stretched from via Roma as far as the present day via Xl Febbraio. In the year 1700, the estate of the Gazzoli family stretched from Via Roma up to the present day Via Xl febbraio. They were a bourgeois family who ran several businesses, including- together with the Marquis Sciamanna- the Pontifical ironworks across the river Nera. Their financial resources allowed the Gazzoli family to improve their station in such a way that they were able to count among their relatives Cardinal Luigi Gazzoli. He was the Pontifical governor of Citta' di Castello, Ascoli Piceno, Loreto and Ancona until he was awarded the title of Cardinal by Pio Vll.
It was Luigi Gazzoli who decided to build the Palazzo using a design by the architect Andrea Vici, by combining in a balanced whole the constructions that insisted on the property. Next to the Palazzo, a family chapel was built, and opposite, the stables, in a semi-circular shaped building whose facade was enriched with a large clock. A fountain was added to the inside courtyard using an ancient sarcophago no longer there. The rooms of the building were enriched with decorations provided by Liborio Coccetti.
The use of the building as location for public associations and housing has determined a complete transformation of the structures which had laid abandoned for some years. Around the year 2000, Palazzo Gazzoli underwent restoration and destined to be used as offices while the basement has been transformed into two auditoriums. The Gazzoli property looked out onto via Roma, then one of the main roads in the city, with a structure that had been made particular: it had hosted a convent and had also been one of the first hospital locations in Terni, but they turned it into an arena, a place dedicated to entertainment, maybe inspired in this by the fact that their stables had been erected on the site of the Roman theatre in Terni whose vestiges dated back to the first century A.D.
The arena hosted shows and horse circuses. Buffalo Bill's company also performed there when on tour in Europe. In more recent times the Gazzoli Arena has become the Terni Politeama and today is a multiscreen cinema.