The City of Foley was founded in 1905 by John B. Foley of Chicago after he learned of the area from a railroad land agent while traveling to President William McKinley's funeral in 1901. He came to Alabama the following year, purchased thousands of acres, formed the Magnolia Land Company, and sold acreage to Chicago residents seeking rich southern farmland. In 1905, the Bay Minette-Fort Morgan Railway, a branch of the Louisville and Nashville Railroad, was built for travel to Foley, and Foley supplied the ties for the line, though the plan to extend the tracks to Fort Morgan was never completed. The first engine on the line was a wood-burner called the Pine Knot Special, which made a morning trip to Bay Minette and returned in the afternoon. In Foley's early years, the railroad was its lifeblood, bringing settlers from the North, encouraging the growth of schools, churches, and businesses, and carrying crops to northern markets. In 1971, the L&N discontinued service to Foley and planned to demolish the station, but John Snook, owner of Gulf Telephone, bought the building for $1.00, moved it to Magnolia Springs, and used it as a warehouse. In 1991, he deeded it to the City of Foley, and it was returned to its original site. Using grants, the city renovated the station, turned it into a museum housing artifacts on the history of Foley and Baldwin County, and added a model train exhibit in 2007.