American educational beliefs came with the immigrants and the need for educational institutions had been addressed with the first actual schoolhouse, long known as the "little brick schoolhouse," constructed in 1850. Santa Clara College had been officially established in March 1851(opening its doors to students in May) and on July 10, 1851, the Methodists established a college for boys on land near what is today the corner of Winchester Boulevard and Bellomy Street. (Chartered as the California Wesleyan College, the following year, 1852, the name would be changed to University of the Pacific).

Where once adobe structures were prevalent, wood frame houses burgeoned, as adobe buildings were not considered suitable for permanent housing by the immigrants who upon arrival set upon replicating the environment they had left behind. By 1850, 23 of these had been fabricated and brought from Boston around the horn; others were being constructed of lumber produced by sawmills in the Santa Cruz Mountains, established by enterprising Americans who had early on seen producing lumber and bricks as profitable businesses. Besides homes, hotel rooms were needed and as early as 1849, Santa Clara's first hotel, known as the Bellomy House or Santa Clara House, was in operation quickly followed by the erection of the Union Hotel in 1850.

Besides the economic opportunities provided by construction related endeavors, the newly arrived immigrants had also seen the opportunities for businesses which provided the goods and services necessary for daily life. These commercial ventures were quickly established within the "town" area, often-utilizing previously existing mission institutions and structures. As early as 1847 George Bellomy was operating his "tan yard." Antonio Fatjo arrived in 1848 and, together with Jose Arques, who arrived in 1849, opened the Farmer's Store. Dr. Henry H. Warburton also arrived in 1848, became Santa Clara's first practicing physician and established the first drug store. And, in 1851 S. S. Johnson and Charles Clayton constructed a steam flour mill in Santa Clara, reputed to be the first steam flour mill in California.

Prior to the arrival of the Americans, California was Catholic, and the religious needs of the populace had been met by the Mission Church. The American settlers were mainly Protestant, however, and needed a place to practice their religion. Although Father Real had given them permission to use the Mission facilities, this was viewed as only a temporary solution. Holding services in their individual homes, often with members of differing sects uniting to worship until the church of their choice was organized, a priority was the establishment of a house of worship. Almost immediately these early immigrants built a Methodist church of adobe.

As the year 1851 came to a close, Santa Clara stood poised for its final incarnation. By then, a small hamlet of some 200 people living in a cluster of adobes and simple frame houses had grown up on the land immediately surrounding the Mission Santa Clara compound. With the development of their budding educational, commercial, and religious institutions, the enterprising immigrants were ready for the formal establishment of the Town of Santa Clara.