While still under Spanish control in the early nineteenth century, Coronado was used as a safe harbor by whalers who also began to build hide houses to carry out their work. After Mexico gained its independence from Spain in 1821, land grants were issued for various sections of California, thus creating the grand rancheros and haciendas of this period. On May 15, 1846 a land grant was issued to Don Pedro Carrillo by Governor Pio Pico for "the island or Peninsula in the Port of San Diego." Carrillo's ownership of the land was brief as he sold the property just five months later to the American captain of a trading ship, Bezer Simmons, for $1000.00.
Work began immediately on the resort community that the Beach Co. investors envisioned. The men hired hundreds of laborers of various nationalities to begin the division and landscaping of lots, the laying of railroad tracks, and the construction of a water and irrigation system. In order to accommodate the growing number of people journeying to the peninsula, Babcock and Story created the San Diego and Coronado Ferry Company on April 16, 1886 with the ferry Coronado completing its first run on August 19th. Babcock and Story leaked news of a proposed hotel on Coronado to the local newspapers which caused a great deal of excitement in the community of San Diego and beyond. With the increased publicity surrounding this grand venture came new interest in the community planning of the peninsula. Thus on November 13, 1886 the Coronado Beach Co. held an auction for the sale of lots ranging in price from $500.00 to $1600.00. By the end of the day, the Beach Company had sold 350 lots for a total of $110,000.00, which was, incidentally, the purchase price of the entire peninsula.
July 1889 proved to be a momentous month in the history of Coronado as John D. Spreckels became an investor in the Coronado Beach Company, buying out Hampton L. Story's one-third interest. Over the next three years, Spreckels bought controlling interest in the company and became the sole proprietor of the Hotel del Coronado. He also oversaw the building of the grand mansion on Glorietta Boulevard, the establishment of Tent City, and the sale of North Island to the U.S. government in 1917. While the Hotel del Coronado became one of California's most beloved destinations, the resort community increased its visitors with the rise of Tent City. Vacationers flocked to the make-shift city at the foot of the Hotel del for summer fun. There were swimming facilities, carnival booths, a ferris wheel, a children's bull fight, aquaplaning, sailing, and numerous activities for the entire family. Tent City remains a fond memory for many residents of Coronado and vacationers from around the world who visited the peninsula between 1900 and 1939.