Lexington, IL USDA Loans VS FHA Loans

Lexington is a city in McLean County, Illinois, United States. The population was 2,090 at the 2020 census. There are two theories regarding the etymology of the city name. One says it was named for the Battle of Lexington, where General Gridley’s father fought. and the other that it was named for the home town of James Brown, the town’s co-founder.

Lexington was laid out on 4 January 1836 by Asahel Gridley (1810–1881) and James Brown (c. 1802- ?). Gridley was a lawyer and banker from Bloomington who would eventually become the richest man in McLean County; Brown was born in Lexington, Kentucky, and Lexington, Illinois, seems to have been his only attempt at founding a town. Its founding was part of a great real estate boom that swept across the nation. Within a few months of the founding of the town seven other new towns were laid out in McLean County: Concord (now Danvers), Hudson, Le Roy, Livingston, Lytleville, Mt. Hope and Wilksborough. In common with other towns founded during the 1836 boom, and unlike many later towns, Lexington was designed around a central public square with streets running true north-south and east-west. In the case of Lexington, the original town consisted of 36 blocks, each containing six lots. Like most of the towns of the 1836 era the town was built along the line that divided woodland from prairie; the southeast corner of the town was just within the limits of timber. Like most Mackinaw River towns, Lexington was laid out on higher ground some distance from the river itself.

Gridley and Brown first offered lots in the town for sale at a public auction on 30 April 1836 at 10:00 in the morning. They began their printed advertisement for the sale by telling readers that the town was on the main road from Springfield, via Bloomington, to Chicago and that their new town was a mile from the Mackinaw River. They wrote that Lexington “is located on the margin of a fine rolling prairie, near a large and inexhaustible body of the best timber the country affords, sufficient to justify the immense settlement already being made.” They told potential buyers that there were two saw mills and a fulling mill nearby. Moreover, they added, building had already begun. For those with good security, one twelve months credit was available.

Between 1837 and 1854 the survival of Lexington was in doubt. The great land rush that peaked in 1836 gave way to a severe lengthy national depression. True to their word, Gridley and Brown had begun some construction. Their first structure was used as a store, but in less than a year the business had failed and the building was hauled away to Bloomington. The first house was briefly occupied, but it was soon moved to the rival town of Clarksville, which was located a few miles downstream. No one was certain exactly what route the Springfield-to-Chicago road would take. Clarksville tried to attract the road by building a bridge across the Mackinaw River and the 1840 town of Pleasant Hill, which had been established just upstream from Lexington, was doing its best to attract traffic. The county began to demand taxes on the large number of unsold lots in the town; by the early 1850s over 300 Lexington lots were offered for sale to satisfy unpaid taxes. The town square was used for grazing cattle. Yet some continued to believe in the new town. Jacob Spawr (1802–1902) had moved into Lexington a year after the store had departed. He built a house of a type known as a double log pen, a dog trot, or sometimes two-pens-and-a-passage: essentially it was nothing more than two log cabins facing each other with a common roof. This building served as dwelling, post office and tavern. Because Lexington was halfway between the county seats of Pontiac and Bloomington, Spawr’s house provided a convenient stopping place: Abraham Lincoln and Stephen Douglas were frequent guests. In the 1850 United States Census Spawr’s occupation is listed as “landlord”. By 1854 it was estimated that there were only about a dozen families in Lexington.

On 4 July 1854 the railroad, which would soon be known as the Chicago and Alton, reached Lexington. Suddenly everything changed. A grain warehouse which had been built by Thomas Kincaid was hauled across the tracks, given a passenger platform, and put to use as a railroad station. Dawson and McCurdy built a grain elevator. Three denominations erected churches. The town formed its own government; their first act was to buy up the stock of the two local whiskey sellers and pour the contents of the bottles into the mud of Main Street. The Mahan brothers built a downtown windmill. A new hotel was built. Lexington boomed. By 1865 the first brick block had been erected. On 21 November 1860, the train brought Abraham Lincoln to Lexington, where he spoke a few words of goodbye to his old friends; on 2 May 1865, just before noon, another train passed through Lexington, this one holding Lincoln’s body.