Art Villa was established by Non-Governmental Foundation for the Revival and Development of Cultural Heritage of Shida Kartli in 2000 by Tbilisi-born artist Karaman Kutateladze (chairman of the Foundation). Art villa started as art squat settled in so called Bolgarsky Palace, a derelict building which had been used by local peasants as a hay barn. The building had been cleaned and put in order with the help of artists, architects and students from Tbilisi State Academy of Arts.
The process of renewal carried out in accordance with the new functions of the cultural heritage was later turned into architectural project. It was the Art Villa Garikula which first presented Georgia at the Venice Biennial of Architecture in 2004 (directed by Kurt W, Forster and titled METAMORPH) with INTERVENTION project. It showcased the metamorphosis, the step-by-step transformation of the Bolgarsky Palace from the abandoned heritage to its new future as the Centre for Contemporary Art.