The area along the Redwood River, where Marshall is presently situated, was first settled in 1870. Within two years, the Winona & St. Peter Railroad was built and Marshall became the Lyon County Seat. The prairie community grew rapidly into a thriving town of 1,000 with a newspaper and a variety of shops. In 1950, the Weiner Memorial Hospital was built as a memorial gift from the Weiner family. About that time, Paul Schwan built a dairy plant and four years later founded the Schwan's Ice Cream Company. In 1963, the Minnesota University System created Southwest Minnesota State University, providing a great impact on the social environment and development of the City of Marshall.