The first dam was built on the site by the Peninsular Paper Company as early as 1867. At the same time, a large paper mill was constructed on the south side of the river, and a smaller one was built directly across the river in 1876. The smaller paper mill was heavily damaged by a fire in 1898. That mill was closed down, and the surviving equipment was moved to the larger facility. The original dam was replaced with the current dam in 1914. Heavy rain caused a dam failure on May 14, 1918 that caused considerable damage to some bridges further downstream, and the dam was completely repaired within two years. The larger facility remained in operation until 1970. In 1986, the city of Ypsilanti acquired the land with intent to restore it or convert the facilities for other usage, but the ideas never materialized before it was decided to demolish the remaining structures. The larger south-side paper mill was demolished in 2004 to make room for two residential apartment buildings called the Peninsular Place Apartments. The only remaining remnant of this paper mill is the original chimney that now stands in the courtyard of the apartment complex.
Current status
The hollowed out exterior of the smaller north-side paper mill and signage remains standing. The surrounding area has been reorganized as Peninsular Park and is a popular destination for picnickers and shore fishermen. The dam is directly across North Huron River Drive from the main campus of Eastern Michigan University. In September 2018, the city of Ypsilanti and the Huron River Watershed Council conducted a report to assess the feasibility of removing the Peninsular Dam and remaining structures. The report concluded that dam removal is feasible. The dam has a "high" hazard potential classification, which means a high degree of damage will result if the dam should fail in the future, although the structural integrity of the dam is fair. An early estimated cost of the demolition of the dam exceeded $800,000. The dam is considered obsolete, because it no longer serves an economic purpose and is in need of repairs and ongoing maintenance. The report stated the possibility of maintaining the existing connected powerhouse structure and sign atop it, as the structure poses no hazard and is an iconic feature in the area. On May 7, 2019, the Ypsilanti city council voted 5–1 to approve an initial $500,000 toward the deconstruction of the dam instead of continuing maintenance of the now-defunct structure. Upon further assessment, the total cost of removing the dam is estimated at $2.7–4.3 million. No future timeline has been set, although the surrounding parkland may be preserved and possibly upgraded.
