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The Palomar Observatory is an optical telescope observatory in San Diego, California. It is owned and operated by the California Institute Of Technology. The idea for the observatory came from a brilliant astronomer named George Ellery Hale (who has a Palomar telescope named for him)
According to Fox Mulder, Hale was presented with the idea by an Elf who climbed in his window one night while he was alone paying billiards. The Elf suggested Hale apply to the Rockefeller Foundation for a grant to build the observatory (TXF: "Little Green Men").