After the demolition of the "People's Theatre," a proposal was made to build the new theater in the City Park, at Felvonulási Square. An international design contest for the new theatre was held in 1965. No first place prize was awarded, and instead the second place prize was shared between the plans of Miklós Hofer and Jan Bogusławski - Bohdan Golebiewski. The planning, led by Hofer, stretched on for the better part of two decades. The building permit was finally granted in 1985, but the construction work went no further than chopping down a few trees. In 1988, a tender was held for a new location and Engels Square (today Erzsébet Square) was chosen. Another decade passed without any progress. In 1996, Parliament agreed to move on to the next phase. However, the project was delayed again due to political quarrels over the next several years. The project resumed again with architect Ferenc Bán being declared the winner, but the newly elected government stopped the work, finding it too costly.