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==History== The native inhabitants of the region were the [[Karankawa]] people, whose initial contact with Europeans came in the 16th century when Spanish expeditions first traversed their territory. In 1685, the area was explored by [[René-Robert Cavelier, Sieur de La Salle]], the leader of an ill-fated French settlement attempt whose flagship ''[[La Belle (ship)|La Belle]]'' was wrecked in the bay the following year.<ref>http://www.visitbaycity.org/history/index.html {{Webarchive|url=https://web.archive.org/web/20110628054243/http://www.visitbaycity.org/history/index.html |date=2011-06-28 }} Historic Matagorda County</ref> In the 1820s, English-speaking settlers arrived and came into frequent conflict with the Karankawa, who were eventually driven out of the area.<ref>{{Cite web |last= |first= |title=Karankawa Indians |url=https://www.tshaonline.org/handbook/entries/karankawa-indians |access-date=2023-12-19 |website=Texas State Historical Association |language=en}}</ref> Popular local legend states that the area was named Tres Palacios ("Three Palaces") several centuries ago by shipwrecked Spanish sailors who claimed they saw a vision of three palaces on the bay. Historians believe it was more likely named for [[José Félix Trespalacios]], an early Mexican governor of Texas. The town was originally called Trespalacios, but shortened its name due to a nearby post office already using the longer version.<ref name=":0">{{Cite web |last= |first= |title=Palacios, TX |url=https://www.tshaonline.org/handbook/entries/palacios-tx |access-date=2023-12-19 |website=Texas State Historical Association |language=en}}</ref> The future site of Palacios was ranch land until 1901, when it was put up for sale by the estate of the former owner, [[Abel Head "Shanghai" Pierce|Abel "Shanghai" Pierce]]. The land was purchased by a development company, surveyed into lots, and with the arrival of the [[Southern Pacific Transportation Company|Southern Pacific Railroad]] and the establishment of the Texas Baptist Encampment, it rapidly grew into a seaside resort town. It was first settled as a community in 1903.<ref>''Columbia-Lippincott Gazetteer'' p. 1413</ref> City government was established in 1909, and by 1915, Palacios was home to more than 100 businesses, with a post office, library, weekly newspaper, numerous hotels, including the imposing 1903 [[Luther Hotel]] along the waterfront, and churches, as well as a large entertainment pavilion built on a pier in the bay.<ref name=":0" /> In 1926, [[Camp Hulen]] (originally "Camp Palacios") was opened as a training center for the 36th Infantry of the [[Texas National Guard]]. The camp was leased by the [[United States Department of War|War Department]] during [[World War II]], when it was developed into a major antiaircraft training facility with a peak troop capacity of 14,560, and also served as a detention center for German prisoners of war.<ref>https://tshaonline.org/handbook/online/articles/qbc17 Handbook of Texas Online, "Camp Hulen"</ref> The population of Palacios boomed during this period, and the city hosted visiting stars such as [[Rita Hayworth]] and [[Glenn Miller]].<ref>http://www.citybytheseamuseum.org/hulen.html {{Webarchive|url=https://web.archive.org/web/20080512012011/http://www.citybytheseamuseum.org/hulen.html |date=2008-05-12 }} Palacios Area Historical Association</ref> After the war, Camp Hulen was closed and the local population declined. The town was hit by [[Hurricane Carla]] in 1961, causing major damage. Since then, the population has grown again, with the settlement of [[Vietnamese Americans|Vietnamese]] immigrants and other newcomers from all over the United States. In 1973, acknowledging the rash of UFO sightings in the area and the state, then Mayor W.C. "Bill" Jackson declared October 24 Palacios' "First Annual UFO Fly-In Day" and called on President Richard Nixon to declare the community the "Interplanetary Capital of the Universe."<ref>Bills, E. R. ''Texas Far & Wide: The Tornado with Eyes, Gettyburg's Last Casualty, The Celestial Skipping Stone and Other Tales''. History Press, 2017.</ref> In 1991, a pavilion was rebuilt on the waterfront, and in 1995 the French shipwreck ''[[La Belle (ship)|La Belle]]'' was discovered at the bottom of the bay, becoming the focus of a major archeological excavation which was staged out of Palacios in 1996-1997. In 2009, the city marked its centennial with celebrations and other events.<ref>http://palacioschamber.com/touristinfo.html Palacios Chamber of Commerce "Our Heritage"</ref>
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