The town of Story was founded as a logging community in 1851. During its heyday, the town of Story was the largest settlement in the area. It had two general stores, a schoolhouse, a slaughterhouse, a saw mill, a post office, a blacksmith forge and a nondenominational church. However, during the Great Depression people left to go somewhere else.
No new construction followed after the Great Depression and no one has ever since attempted to modernize the assign structures of Story. The Story Inn was created by two hippies from Bloomington who also bought and reassembled the town. Rick Hofstetter is the current owner of the inn. For two decades he fought to preserve a lot of Indiana’s distinguishing landmarks. He almost always finds himself in the midst of battles to preserve remnants of the past so that they can still be enjoyed on the future.
When the current owner of the inn took over the business, he was a skeptic. One of the first things he noticed was the fact that most rooms had one guestbook each. He was surprised to find out that each guestbook are documentations of the guests’ stories of the paranormal. The room with the most documentations of paranormal activity was the one located just above the inn’s restaurant. The guest books have been left in the inn’s rooms for a long time that it has become a tradition. Once the books have reached maximum capacity they would then be placed in the attic and employees would then replace them with fresh, new books.
One of the most common stories among guests and hotel staff is the “Blue Lady”. She is believed to be the spirit of the wife of Dr. George Story. The room where the Blue Lady is always seen was once called the Garden Room. However, it has been renamed after its most frequent visitor. People believe that is a blue light is placed in the room in the on position, the Blue Lady would appear. However, there have also been cases when the Blue Lady would just appear on her own. She is described as having blue eyes and has the habit of leaving behind items which are blue in color. Some people also reported smelling cherry tobacco, the Blue Lady’s favourite, when she was still alive.