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At one point during the debate, Marshall officials were so certain of its selection that they built a governor's mansion. Kilbourne of Ingham County proposed that the nearly uninhabited Lansing Township be made the seat of government.
The legislature agreed, with the location north of Ann Arbor, west of Detroit, and east of Grand Rapids being deemed a suitable compromise.
On July 13, 1787, the Second Continental Congress passed the Northwest Ordinance, creating the Northwest Territory which included Michigan. Michigan first applied for statehood as early as 1832, though it was rebuffed due to a dispute with Ohio over the Toledo Strip, a 468-square mile (1,210 km²) area that included the important port city of Toledo.
By 1835, Michigan had formed a state government without receiving authorization from Congress to do so.
The seat of government for this state shall be at Detroit, or at such other place or places as may be prescribed by law until the year eighteen hundred and forty-seven when it shall be permanently located by the legislature.
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Proponents of moving the capitol also sought to promote settlement and the economy in the interior, as well as making the government more accessible to the people throughout the state.
Contenders seeking designation as the new Capitol included Ann Arbor, Jackson, Grand Rapids, and Shiawassee Township in Shiawassee County.