In 1837, the Racer's Storm passed just to the south of the town, raising water levels four feet. The Great Hurricane of 1900 destroyed the nearby (and then much bigger) city of Galveston, which is situated on a barrier island southeast of downtown Houston. That hurricane weakened to a tropical storm by the time it reached Houston. The periphery of Hurricane Carla hit the city in 1961, causing major damage to Houston. At the time of landfall, Carla was the most powerful tropical system to hit the Texas coast in over 40 years. In 1983, the city was struck squarely by Hurricane Alicia, causing $1 billion of damage to the city during a down period in the city's economy.