The lookout tower was originally built by the owner of the Zwodauer spinning mills above the town of Pencil Town on the Pichelberg. Unfortunately, the textile entrepreneur did not experience the festive opening of the observation tower in 1896 because he was killed by one of his employees. Since that time the observation tower became dilapidated until 1913, when it was bought by the Lead City Beautification Association. The observation tower was dismantled and relocated to the Galgenberg. With the outbreak of the First World War, interest in the observation tower declined. It was totally destroyed during the Second World War. The last photographs are from 1938.
In 2007 the idea arose to renew the original lookout tower, but not in the same shape, mainly because of the terrain and the tall greenery. In 2011 the renovation project began. The city of Pencil City has received the land for the construction of the observation tower. In the same year the study and the project of the observation tower were created. The lookout tower was called 'Cibulka'. The architect is Ing. Marcela Plachá.