A paper mill built here helped to revive the small community somewhat up until the time of the Civil War. Gay City lost a number of their younger men in the war, and shortly there after, that mill also burned which ultimately lead to the demise of Gay City. People left here for jobs in the nearby big cities and the homes here were abandoned and left to the elements.
In 1943, one of the last descendants of the people who lived here sold the land to the state of Connecticut with the stipulation that it be called "Gay City". It became a a state park one year later.
Sources: http://www.damnedct.com/gay-city-hebron/
http://en.wikipedia.org/wiki/Gay_City_State_Park
http://www.ct.gov/deep/cwp/view.asp?a=2716&q=325202
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