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In 1975, Hitchcock's Commissioner's Court considered annexation of a three square mile area bordering Alta Loma. This area was in Hitchcock's extra-territorial jurisdiction and did not sit well with the residents. It was feared that Hitchcock would annex most of this area and upset the way of life residents have been accustomed to.

The Chamber of Commerce held a meeting at the High School cafeteria to discuss the situation and approximately 1,000 people attended. Hitchcock City Commissioners assured the crowd that annexation was merely being discussed. The public feared that Hitchcock would annex most of the area. Legally, Alta Loma/Arcadia could be annexed  by Hitchcock without the consent of the citizens.

After a short period of time, a well organized protest caused Hitchcock city officials to delay the annexation proposal allowing the residents of Alta Loma/Arcadia to develop a plan. The threat of Hitchcock annexing the area still remained. Change was inevitable for the Alta Loma and Arcadia area and the residents. It was evident that preservation of the two towns was necessary. The only two choices residents had was to incorporate into a city or be annexed by other cities in Galveston County

Alta Loma and Arcadia were proud rural communities with uncomplicated atmospheres that got very complicated fast. The thought of another city annexing this area was unbearable. The residents ultimately decided to gather together and attended workshops, meetings, and took surveys do determine their future.

On July 8, 1975, a panel dealing with incorporation questions and answers was held setting out the necessary requirements and guidelines of the incorporation. It was agreed to call the new city Santa Fe due to the school and railroad that was already in the area.

On November 6, 1976, a town meeting was held with the title "Santa Fe-We Can Plan Our Own Future". The agenda consisted of discussions regarding management of the city, community planning, street drainage, and law enforcement. The necessary steps were being established to take on the role of a new city.

In October of 1977, Hitchcock began to move forward towards annexation. A public hearing was held to discuss annexation of 5 areas that covered 2.4 square miles, to be passed on December 16, 1977.  On, January 9, 1978, a petition with 882 signatures from residents of the two areas caused  Hitchcock  to hesitate and the annexation threat temporarily ceased. The threat still existed for the rest of the year and the residents felt the importance of incorporation. Necessary steps were then taken to move forward with the planning and incorporation of the new city.

The City of Santa Fe, Texas, was born on January 21, 1978, by voters with a 1,024 for and 305 against vote . An election by the people within the boundaries of the proposed city made what is now known as Santa Fe possible. Many workshops and preparations culminated in establishing Santa Fe as a city and derailed Hitchcock's attempt at pursuing annexation of what is now the City of Santa Fe.