In 1940, World War II began and the plans were put on hold. As a goodwill gesture to the government, Robert C. Graham rented the land to the United States Air Corps for $1 per year. The Air Corps used this land to train their soldiers and established a Prisoner of War camp. The ocean front area was used as a rifle range and the barracks were set up on the west side of Collins Avenue. The camp for prisoners was located where the Bal Harbour Shops are presently.

In 1945, the war was over in both Germany and Japan. The Air Corps left the barracks buildings as a thank you to the owners of the property. These barracks were converted into apartment homes by Mr. Graham in 1946.

ORIGINAL INCORPORATION - 1946
In order to incorporate a city in 1946, there had to be at least 25 male registered voters residing in the area. Mr. Graham had twenty five families move into the apartment homes that he had converted in order to qualify the Village for incorporation. He then hired Willard Webb, a Miami Beach tax assessor, to draft a charter for the Village. After the charter was completed, the Village of Bal Harbour was incorporated on August 14, 1946, by Mr. Graham and 25 male registered voters. The Village was operated under the city manager form of government.

SELECTING A NAME
The original name chosen for Bal Harbour was Bay Harbour. However, the planning committee didn't think that was appropriate for a city that was on the beach. A name was invented to encompass a city that ran from the bay to the Atlantic Ocean. The "b" was taken from the word bay and the "a" and "l" were taken from the word Atlantic. Hence the word Bal was created.

BUILDING A VILLAGE
Swampland was filled, sea walls were constructed and the yacht basin was created. Contracts were signed for the sewer systems, water pumping stations and utilities. Bal Harbour was the first planned community in Florida to have its utilities placed underground. Developers set guidelines for the development of the beachfront and the residential areas. Collins Avenue was paved into four lanes with a landscaped median and later widened to the present day six lanes. Village plans indicated that ocean front property was to be 200 feet deep and lots approached $100,000. Lots in the residential area were about 1,800 square feet and cost from $6,500 to $20,000.

1946	The first hotel was built and was named "The Kenilworth By-the-Sea." It was built by Tom Raffington and made famous by Arthur Godfrey. It has since been demolished and is now the Kenilworth Condominium.
1946	The first home was built at 160 Bal Cross Drive. It was built by Mr. Robert C. Graham Jr., who was the son of Bal Harbour Developer Robert C. Graham.
1946	Construction for the Sea View Hotel was started.

RE-INCORPORATION - 1947
Bal Harbour Village was re-incorporated by a special act of the 1947 Florida Legislature and its own charter was issued June 16th. This new charter supplemented the original incorporation under the General Laws of Florida.

 

1947	The Church by the Sea was built.
1948	The Beach Club was built. It's Restaurant was operated by Howard Johnson.
1949	A new bridge was started over Baker Haulover.
1956	The current Village Hall was built.