The new governor, Rafael E. Melgar, greatly promoted the development of the city, he is due the construction of the first concrete buildings, these being the Government Palace, the Morelos Hospital and the Belisario Domínguez School, also developed promoting the establishment of workercooperatives dedicated to logging, and chewing gum, among other products and which motivated the start of emigration to Quintana Roo, promoted in addition to increasing population of the territory. In addition, and according to the postulates of the time, Melgar decided to remove all names of religious origin to the towns and cities of the territory, being renamed Payo Obispo according to decree of 16 February 1937 with the new name of Chetumal. The development promoted by Melgar declined to a greater or lesser extent during the following governments and for various reasons, but the growth of the city continued to increase.