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This modest three-storey building was erected in 1652 as the seat of Boyar Miloslavsky. After the owner's death, the interior of the building was reconstructed to form a theatre for the performance of Potekhi - an old Russian word for comic performances that gave the palace its current name. Under Peter I the building was used as the Office of the Police, and in the 19th century it became the home of the Commandant of Moscow. During this period the building was reconstructed and its front was transferred to the eastern facade. A northern wing was added, along with several neo-gothic decorations. At the end of the 19th century, during restoration work under the supervision of N. Shokhina, attempts were made to restore the original appearance of the building.
The Palace now houses the Office of the Kremlin Commandant. Restoration work is being carried out, and it will soon become the Church of The Virgin's Prayers, part of the reconstruction of the old boyars' estate.
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