In the close vicinity of Smetana House there used to be a mill called Panský Mlýn. This mill was mentioned in the 14th century as part of the town wall and after many fires in the town was subjected to a range of modifications. Between 1905 and 1907, a school building designed by Prague architect Dobroslav Hnídek was built here. Along with Smetana House this became one of the most expansive buildings outside of the chateau hill and was the subject of intense criticism by journalists in period due to its monumental character and megalopolitan scale.
In 1903, Litomyšl town council bought Panský Mlýn with the view of building the school, organized a competition for its design, and received 37 responses. Hnídka's winning Czech Neo-renaissance design was chosen by the jury as it was seen to fulfil the requirements of the layout of the interiors and was within the set budget. However, the jury was most also likely influenced by its picturesque silhouette, intricately stepped gables and lunette cornices, as well as its richly sgraffito-decorated façade, typical for the Czech Neo-renaissance style. Inspiration for the design seems to have come from Pernštejn Chateau to which it bears a marked resemblance. Later, Hnídek modified the originally more subtle attic gables, curving them and adding cones, thus bringing the design more into line with that of the local chateau. In fact the aesthete Miroslav Tyrš, in his tract “In Favour of Czech Renaissance” recommends that architects look for specific elements on “our” renaissance buildings and imitate them, citing Litomyšl Chateau as a prime example.
It was precisely this formal conservatism and imitative style copying the local chateau that became the subject of long-term criticism in the contemporary press. The demolition of Panský Mlýn and the nearby pub, Karlov, were also condemned, sparking serious debate concerning preserving the ancient character of Litomyšl. The monumental new school building disrupted the town skyline and, in period, was considered to be an entirely unsuitable replacement for Panský Mlýn. The architect Otakar Novotný, a pupil of Jan Kotěra and artistic advisor for the town council, recommended that the local Guild for Aesthetics plant fast-growing shrubbery in order to hide the building's façade. Conversely, the town council viewed the “modern school building with its slim towers” positively, as a beautiful complement to Smetana House.
After 2000, the building was subjected to a complete reconstruction, and fitted with a bronze inscription “Pedagogium” according to a design by the sculptor and medallionist Jiří Věneček.
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