The history of Coney Island as a resort begins when Josephine Hassenstab sold the 31.85-acre island to Lambert Naegele in March, 1884, for $5,200. While Waconia already had several hotels such as the North Star, Lake House, and the Sherman House, the Coney Island Hotel and its resort became the most popular of all of Waconia's hotels and contributed to the town's status as a favorite summer resort.