While surfing found this interesting Bio of a town Zud likes to visit in the Summer.
These 'graphs stood out:

In 1899, Grand Marais was in its peak population years. The lumber camps and mills were thriving, and there was an active commercial fishing industry. The population was well over 2000, with probably another thousand people working in the lumbering camps surrounding the town. The harbor teemed with ships bringing in goods and people and taking out finished lumber products from the mills. A daily train ran from Seney and connected with other lines leading all across the nation. An active business community provided all kinds of services to the workers and their families. Grand Marais had doctors, lawyers, bankers, photographers, a hospital, an opera house, social clubs, good schools for the many children, hotels, boarding houses, restaurants, department stores, livery stables, churches, and a cigar maker, to mention just a few.

In 1911 the lumber companies decided it was time to move on, and in May announced that the railroad would close in November. Residents packed their bags, locked their houses ,and caught the train out. By 1915 there only about 200 people were left in the almost-abandoned town. In that year most of the business buildings along Lake Street were destroyed by fire.

So therein is the storyline, if you review that history, the 2K population, the bustling thriving commerce.
Then the decision to close the town.
That last train ride out, for hundreds of families.
Where do they go? What will they do?
That ride out of Town must have been dramatic. The sound of the train whistle. The smoke of the engine, climbing out of the station.
Point of View from the train
Point of View from the town
The coastline View, the climbing & disappearing Locomotive

The abandoned stores, hospital. The Opera house, the Hotels.
Then once everyone has left, The fire...
If no one will populate the town, The Town Dies and consumed in despair
Burned to the Ground, by some dark deranged spirit or force.

You literary types that roam this realm should be able to put some meat on that...Z