Northern Michigan Asylum was established in 1881 as the demand for a third psychiatric hospital, in addition to those established in Kalamazoo and Pontiac, began to grow. Lumber baron Perry Hannah, "the father of Traverse City," used his political influence to secure its location in his home town. Under the supervision of prominent architect Gordon W. Lloyd, the first building, known as Building 50, was constructed in Victorian-Italianate style according to the Kirkbride Plan. The hospital opened in 1885 with 43 residents.