The Gradska kavana Arsenal restaurant is near Dubrovnik's main square, Luža, located in the very heart of the historic district, where for centuries the destiny of the Dubrovnik Republic was planned and where its leaders carefully guarded their most cherished value, which was not for sale for any amount of gold. – libertas– the freedom of Dubrovnik. In the immediate vicinity of the café are two palaces which symbolize the statehood of the Dubrovnik Republic: Sponza Palace (on Luža square itself), which once served as the customs building and mint, and the Rector's Palace, the seat of the government and residence of the Rector, the ruler of the Republic.