The seat for Sibley County was originally established in Henderson, and an imposing courthouse was erected, being put into service in 1879. However, pressure from residents of Gaylord, from as far back as 1887, to gain the county seat precipitated a county-wide vote in 1915. That vote resulted in Gaylord gaining the seat; this caused around 200 residents to leave Henderson, a major decline in the city's population. Throughout the 50 years after this population loss, Henderson's economy became increasingly more centered on agriculture. Its success in transitioning to agriculture brought rise to the present "Sauerkraut Days" celebration. The former courthouse, now designated 'Henderson Community Building', houses Henderson City offices.