The tower was once the home of a local wizard, Llomnauvel "Firehands" Oloadhin. His tower was invaded by members of the Arcane Brotherhood around 1337 DR, and while he was not able to defeat them all, his final spell destroyed the tower. The spell left behind a side effect: clear and solid-seeming phantom images of the mages as they were hurled down from the tower.
Its claim to fame and sole point of interest were the magical images created by the incident that gave the place its name. The stones of the fallen tower (mostly the upper section) have been rebuilt into a single story. Late every night, patrons can see the mage images fall and magic did not seem to be involved in any way.