The observatory was founded in 1960 as an affiliated institute of the former German Academy of Sciences (East Berlin) and named after the famous astronomer and physicist Karl Schwarzschild (1873 - 1916). 
After German reunification, the institute was re-established in 1992 as the "Thüringer Landessternwarte 'Karl Schwarzschild' Tautenburg". It now operates as the state observatory of the Free State of Thuringia. 
The observatory's 2-meter reflector telescope has recently been used to make some very interesting discoveries of new stars and other celestial objects. 
The observatory has its own homepage http://www.tls-tautenburg.de to. Ask there for more information, possibly also for contact partners for a viewing.