Before however, the new building was built the town council wanted to get rid of the old guildhall. A merchant was even found, who wanted to buy from city the town hall (building was ruined) for the sum 300.000 marks. In its place he wanted to put a big covered market. Petty traders, having their own shops around marketplace, didn't allow this transaction to happen, effectively blocking decision about the sale. Finally, one sold building to remembered merchants, who demolished it. The square after the old town hall stayed unbuilt to present day, by chance, as town council promised then to merchants. What's interesting, a new building of municipality authorities would not be built in a place in which it stands today, if there wouldn’t be a necessity of building a new hospital. An idea to build new seat of municipal corporation in a place of local old hospital completely dazzled mayor Matthes. In 1987 councilors allocated 100.000 marks to buy all buildings and gardens from St. Spirit Hospital.

The ground where the today’s Plac Zwyciestwa is situated was an urban pond, located in front of the Nowa Brama. In the second half of the XIX century the pond together with the pools was covered with the sand from Lasek Polnocny. In 1848-1855, 19 thousands carts of sand were driven out from the excavation in the grove. In the excavation remaining after the sand-pit, in 1924-1926, the representative sports stadium was built, which was named after the field marshal of German Reich Paul von Hindenburg on 15 August 1926. However, in the place where today’s fundaments of the Town Hall are located, marshes and peat bogs expanded. This place was called Plac Welniany. On 7 January 1931 this square was renamed (into the centenary of birthday) on Plac Stephana, from the name of the genius Slupsk’s postmaster - Heinrich von Stephan.

At the same time with the front of engineering ground works and with draining of the field under the building, the contest on the project of the future Town Hall was announced. 87 proposals of 486 architects from all Germany arrived. The jury gathered on 16-17 May 1898 at elementary school at today's Deotymy Street (Wollmarktstrasse). The commission consisted of: professor Ende from Berlin, town planners Meyer and Pluddeman, rich Slupsk trader Karl Frank and, of course, mayor Matthes. After two days of councils, the committee announced that, the project of Prof. Karl Zaar and Eng Rudolph Vahl "The old-German Gothic format" won. The municipal administration signed an agreement one month later. The project supposed arise of the building of about 23176 cubic meters and cost of about 300.000 German marks. The second award in the contest was given to the "Anastassia" draft. The authors were Berlin architects of Schulz and Schlichting. The third place was given to "Plattdeutsch" of the German architects Meier & Werle project.

In April 1899 the works moved on with full steam ahead. However, at the very beginning big troubles came caused by the swampland. There was a necessity to use very expensive caisson technology to work with the fundaments of the Town Hall. In this method one had to drive in eighteen concrete pales into the turf basis. Each pale was of 5, 5 meters of length. The town clerks t had to wait over 10 years for the decision about the building. However, the building of the Town Hall itself took a short period of time. On Saturday, 22 September 1900, the wisp was hung on the top of the roof of the municipality. It became an opportunity for celebration. The inhabitants, over-lords and builders gathered in front of the building ground and had an opportunity to listen to orations of the workmaster Heinemnan, given from specially decorated for this occasion - building cradles. The ceremony ended with the rich banquet in the Klein Hotel (contemporary Staromiejski), and all craftsmen working at the building of the Town Hall were given free beer. Local authoritities intended 600 German marks for this purpose.

Less than a year later, on 5 July 1901 the local newspaper noted down: "At the splendid weather, the inauguration of our new Town Hall took place yesterday afternoon. The houses in the town were decorated with flags. The ceremony began in the afternoon about 16.45 with the playing of the chorale "Let’s Glory Lord" from the Town Hall tower. At that time, the representatives of locals and authorities arrived to the Town Hall chamber, together with guests of honour - founders of donations. His Excellency, the over president von Maltzahn and the prolocutor of the revisory district Sir von Tapper-Laski about 17.00 o'clock brought the mayor Matthesa in to the sessions room". It was the first opening of the council of Municipal in the new building of the Municipality.

It is necessary to admit that the new Town Hall in the neo-Gothic style perfectly harmonized with gates and churches of Slupsk of that time. The asymmetry of facades of the building excellently composed itself with the nearby environment. The grand square in front of the main entrance served as the place of the organization of fairs and town picnics for many years. The mayor Matthes was considered the father of this success. Unfortunately, it was shown that the building expenses of the Town-Hall had doubly outgrown the estimated budget of the construction project. When it was made sure that the urban cashbox kept two million marks of the debt, nobody remembered merits and other people and about urban investments of the mayor, who was dismissed in 1905 with the great rumble from the occupied department.