The first school, which was private, was taught in in Cady's Hall by Mrs. Webb. It would continue until a public schoolhouse was built the following year. That first year, several residential homes were also built, including one by Henry Briser, Dr. A. Davis, B. S. Heath and others.

La Cygne was incorporated as a village in January, 1870, and a board of trustees was appointed. Before long a second hotel was completed by Joseph Goss, which was called the La Cygne House, the La Cygne Flouring Mill was established by Chatterson & Hungerford, and a bank was started in by S. D. Cady, called the Farmers' Savings Bank. The first newspaper in the town was the Weekly Journal, which first appeared in June, 1870. Through the years it would change hands a number of times and continue publication until 1915.

A Methodist Church was organized and soon after built 24x50' frame building for services. The Presbyterians also organized in 1870, but would not have a church until the following year. By the fall of 1870, the town had grown enough that La Cygne had enough residents to organize as a city of the third class, and F. A. Foote was elected the first mayor. At about the same time, a public schoolhouse was built.

In 1871, J.J. Starks erected the first brick building in the town, which held a dry goods business. A bank was established the same year. A new larger school was also built at a cost of $10,000. The two-story brick schoolhouse accommodated grade school through high school students. A 28x44' frame building was completed by the Presbyterians in the fall. That same year, stock was organized in S.D. Cady's Farmers' Savings Bank and a brick building was built. Three years later, in 1874, it would change names and become S. D. Cady & Co., and would later change again to the Linn County Bank. It continues to operate today. Shortly after the the Farmers' Savings Bank was established, Bentley, Pratt & Moore started a private bank, which would operate until 1879, when it was discontinued.

In 1872 several citizens, acting on the advice of an area Indian chief, formed a company to look for silver. The Indian, who said he had received the information through a “spirit,” directed them to a place that took on the name of “Silver Mound.” About $3,000 was spent to sink a 100 foot shaft; but, no silver was ever found and the project was abandoned. Another man, who was sure that lead could be found in the area, spent some $15,000 in a fruitless search for lead in Potosi Township.

In 1880, the flour mill it became the property of D. Coonrad. By this time, the mill was three stories high. Two years later, the mill was updated with "patent process" machinery, and would process put in 80 barrels of flour per day. That same year the La Cygne Organ Factory was established by Swisher & Shrake who manufactured reed organs on a small scale.