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Forest City was founded by Joel Baldwin in 1857, and incorporated on March 12, 1861. It was a well-known shipping center on the Missouri River until 1868, when the river changed course, turned westward, and left the town two-and-a-half miles inland. During Forest City's heyday as a river port, as many as 13 steamboats were tied up, at the wharf, waiting for freight. The last boat docked in Forest City on Aug. 10, 1868. It's name was the Carrie P. Kuntz. The river was gone the following day. Prior to Aug. 10th, Forest City had been the primary river shipping port for Holt County.

The Kansas City, St. Joseph, and Council Bluffs Railroad arrived in Forest City in 1868.

The City Hall in Forest City was originally the Forest City Opera House. It holds the distinction of being the first publically-financed opera house built by a municipality in the United States. The last school in Forest City closed in 1978. The last bank closed in 1986. The last grocery store closed in the early 1990s. A drug store with an old-fashioned soda fountain continued to operate as late as 2000, but has since closed. As of 2004, the post office continues to operate. Three churches remain. One restaurant, and one restaurant/tavern remain open. A Cargill grain elevator is still operating, and a fertilizer/seed business remains. The Burlington Northern Santa Fe Railroad continues to serve the town. Train passenger service ceased in the 1960s. - Robb Roberts

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