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Although, they failed to reach Miami, in 1895, there were two destructive freezes that caused significant problems on the farm crops in Florida. That same year, a wealthy businessman named Henry Flagler had a meeting with a visionary woman named Julia Tuttle. In exchange for hundreds of acres of prime real estate, she convinced Mr. Flagler agreed to extend his railroad to Miami.
In addition, Mr. Flagler agreed to lay the foundations for a community on both sides of the Miami River and construct an elegant hotel close to the confluence of Biscayne Bay and the Miami River. Long before his fateful meeting with Ms. Tuttle, Mr. Flagler had been quietly planning this extension because he wanted to bring his railway system to Key West and link it with other parts of his extremely large system, which included a resort in the Bahamas as well as a steamboat line.
In 1896, the first railroad arrived in Miami. The community was being built in both sides of the Miami River by then. There was a retail district on Avenue D, which is currently known as Miami Avenue, in the center of the community that emerged just north of the Miami River in a region of piney woods.
Some 344 registered voters, a large portion of whom were African American laborers, packed onto the lobby of a wood frame building that was located on Avenue D close to the Miami River in 1896. That year Miami was incorporated as a city, in addition to the Flagler slate of candidates.
However, by then, there were institutions and trappings that accompany numerous different communities that include churches, retail stores, a bank, and a newspaper had been published. As compared to other frontier communities. Miami was completely different because the beautiful Royal Palm Hotel that was owned by Mr. Flagler. The hotel stood five stories tall, and has a rotunda in the center that added another story to the building. The yellow framed building had a red mansard its roof top and there were also several different prominent features that included the verandah that is 578-foot long. The building featured over 400 guest rooms. The hotel became a popular resort for the Gilded Age princes of America soon after it opened in 1897, that included the Vanderbilt family, Andrew Carnegie, and John D. Rockefeller.
During its first year as a city, Miami experienced a series of traumas. In 1896, right after Christmas, much of the business district was destroyed by a devastating fire. In 1898, during the Spanish-American War, some 7,500 men were violent, troublesome, and restless troops who residing in Camp Miami, which threatened the residents of the small community. In 1899, many families were forced out of their homes to seek temporary, safe housing as the result of a dreaded yellow fever epidemic.
However, despite these perils, the early Miami grew rapidly and by the early 1900's, the fledging community had a population of 1,681 people. The primary economic support was provided by agriculture and tourism. On both sides of the Miami River there were new neighborhoods. Miami had become a small southern town and lost its frontier ambiance.
The future direction of Miami would be dictated by some significant projects in the first decade of the 1900's. Henry Flagler succeeded in obtaining funds from the government to have the Government Cut dredged, which connected the Atlantic Ocean, which was located several miles to the east of the cut, with the new Bayfront Port in Miami, as well as the construction of a deep water channel. Mr. was also an important key player in connecting Key West, which was some 120 miles south of Miami to the Keys through the extension of the Florida East Coast Railway.
On 1906, the State of Florida took on a rather ambitious program to drain the Everglades. The objective was to establish rich, new lands that could be used for agriculture. In 1908, a dredge began digging a drainage ditch close to the headwaters of the Miami River, and the Miami Canal connected Lake Okeechobee with the Miami River by 1913, while the water from the swampland was carried out to sea along connecting waterways. The Everglades drainage resulted in the birth of a feverish real estate industry for much of southeastern Florida, including Miami, as some prominent speculators bought millions of acres of reclaimed property from the State of Florida, and then market it very aggressively in many parts of the country.
The population of Miami had increased to almost 5,500 people by 1910, while the number of new business establishments and tourists also increased dramatically. Twelfth Street, currently known as Flagler Street, had overshadowed Avenue D as the most important roadway in Miami, and was the address for the leading business establishments in Miami. The cachet of Twelfth Street continued to increase with the opening of a new five story building that was owned by the Burdine Department Store in 1912, which was the first skyscraper in Miami.