After laying out plans for the city and gaining partners to develop the area, the value of land rapidly increased in a period of land speculation. This lasted until the Panic of 1837, which brought an abrupt end to most speculative land development in the area for several years. Followed soon after by a severe winter in 1841, the area struggled economically. The western terminus of the Michigan Central Railroad in New Buffalo was completed in 1849. The harbor was improved and the economy flourished briefly until the railroad connection to Chicago was completed in 1853, after which the use of the harbor for shipping declined.