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During the 1920s the necessity for an additional state hospital
became apparent. The combined capacity of the existing state hospitals was 1,900 beds short of what was considered adequate. In 1929 Governor Green proposed that a fifth state hospital be developed. The first appropriation of $1.5 million for the fiscal year ending 1930 was passed. Ypsilanti was chosen because of it's population density and proximity to the University Center in Ann Arbor as well as it's availability of land. Purchase of the 1,209 acres was begun in 1929.