History

The 19th century town of Michigan City emerged as a plan before it ever became a settlement. The plan arose from the ambition to create a harbor on Lake Michigan, and a road to transport supplies to homesteaders in Indianapolis and central Indiana. In 1830, just 14 years after Indiana became a state, the land for Michigan City was purchased, sight unseen, by Isaac C. Elston, a real estate speculator who had made a small fortune in Crawfordsville. He paid about $200 total for 160 acres of land including the future harbor at the mouth of Trail Creek. The town was named after the road leading up to Lake Michigan.

Early visitors to the region were captivated by its rugged beauty, its abundance of wildflowers and berries, and especially the majestic sand dunes, one towering to 175-foot height. The land, however, was not suitable for farming. The growth of Michigan City was due to the flowing waters of Trail Creek, which afforded good locations for lumber and gristmills. Farmers came from miles around to have their wheat ground into flour. Other businesses developed rapidly.