This project sparked Flagler's interest in creating a new "American Riviera." Two years later, he expanded his Florida holdings. He built a railroad bridge across the St. Johns River to gain access to the southern half of the state and purchased the Hotel Ormond, just north of Daytona. He also built the Alcazar hotel as an overflow hotel for the Ponce de León Hotel. The Alcazar stands today as the Lightner Museum next to the Casa Monica Hotel in St. Augustine that Flager bought from Franklin W. Smith. His personal dedication to the state of Florida was demonstrated when he began construction on his private residence, Kirkside, in St. Augustine.
Flagler completed the 1,100-room Royal Poinciana Hotel on the shores of Lake Worth in Palm Beach and extended his railroad to its service town, West Palm Beach, by 1894, founding Palm Beach and West Palm Beach.[2] The Royal Poinciana Hotel was at the time the largest wooden structure in the world. Two years later, Flagler built the Palm Beach Inn (renamed Breakers Hotel Complex in 1901), overlooking the Atlantic Ocean in Palm Beach.
Flagler originally intended West Palm Beach to be the terminus of his railroad system, but in 1894 and 1895, severe freezes hit the area, causing Flagler to reconsider. Sixty miles south, the area today known as Miami was reportedly unharmed by the freeze. To further convince Flagler to continue the railroad to Miami, he was offered land in exchange for laying rail tracks from private landowners, the Florida East Coast Canal and Transportation Company, and the Boston and Florida Atlantic Coast Land Company. The land owners were Julia Tuttle, whom he had met in Cleveland, Ohio, and William Brickell, who ran a trading post on the Miami River.
Such incentive led to the development of Miami, which was an unincorporated area at the time. Flagler encouraged fruit farming and settlement along his railway line and made many gifts to build hospitals, churches and schools in Florida.
By 1896, Flagler's railroad, the Florida East Coast Railway, reached Biscayne Bay. Flagler dredged a channel, built streets, instituted the first water and power systems, and financed the city's first newspaper, The Metropolis. When the city was incorporated in 1896, its citizens wanted to honor the man responsible for its growth by naming it "Flagler". He declined the honor, persuading them to use an old Indian name, "Mayaimi". Instead, an artificial island was constructed in Biscayne Bay called Flagler Monument Island. In 1897, Flagler opened the exclusive Royal Palm Hotel there. He became known as the Father of Miami, Florida.
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