Bay City was first established in 1837, and was incorporated as a city in 1865. Twenty-five years after Leon Trombley became the first permanent settler to build a log-cabin along the river at what is now Fourth Street, Bay City became the largest community in the county and the location of the county seat of government. Most of the county's agencies and associations are located here. The city shares common borders with Essexville, MichiganEssexville and the townships of Bangor Township, Bay County, MichiganBangor, Frankenlust Township, MichiganFrankenlust, Hampton Township, MichiganHampton, Merritt Township, MichiganMerritt, Monitor Township, MichiganMonitor, and Portsmouth Township, MichiganPortsmouth. Bay City was originally known as "Lower Saginaw," and fell within the boundaries of Saginaw County, MichiganSaginaw County until Bay County was organized in 1857. It was at this time that the name was changed to Bay City. While Saginaw, MichiganSaginaw had the first white settlement in this area in 1819, larger ships had difficulty navigating the shallower water near the Saginaw settlement. Due to this fact, many of the early pioneers moved to Lower Saginaw as it became clear its deeper waters made it a better location for the growth of industry which relied on shipping. By 1860, Lower Saginaw had become a bustling community of about 2,000 people with several mills and many small businesses in operation. In 1865, the village of Bay City was incorporated as a city. Rapid economic growth took place during this time period, with lumberlumbering, milling, and shipbuilding creating many jobs. The early industrialists in the area used the Saginaw River as a convenient means to float lumber to the mills and factories and as a consequence amass large fortunes. Many of the mansions built during this era are registered as historical landmarks by the state and federal government. In 1873, Charles C. Fitzhugh, Jr., a Bay City pioneer, and his wife, Jane, purchased land and built a home on property bounded by Washington, Saginaw, Ninth and Tenth Streets, which later became the location for City Hall. Fitzhugh dealt on a large scale in wild lands and farms, being an agent for over 25,000 acres (101 km sq) of land in Bay County. During this time, Washington Avenue was primarily developed with residential homes. Businesses were concentrated along Water Street near the Saginaw River. As time went on, businesses started to expand along Washington Avenue. In 1891, the Fitzhugh’s sold the land to the City of Bay City for United States dollar$8,500 "to be used for the erection of a City Hall and offices and for no other purposes whatever." Until 1905, the City of Bay City was limited to the east bank of the Saginaw River. Previous to that date, the city occupying the west bank of the Saginaw River was a separate city known as West Bay City. The unified Bay City celebrated its centennial in 2005. Source: http://en.wikipedia.org/wiki/Bay_City%2C_Michigan