The area was originally a small, steep, wooded ravine cut through by
Phalen Creek. The first settler,
Edward Phelan, moved there in 1841. Phelan fled Minnesota in 1850 after perjury charges arose but not before leaving a mark that would change what was once Mill Creek to Phalen. Among the earliest inhabitants to settle permanently in the isolated spot were Swedish immigrants. First arriving in the 1850s, they gave their new home the name "Svenska Dalen" (lit.
[the] Swedish Valley), a designation that remained (in English translation) long after they moved on, to be replaced by a wave of Italian immigrants in the early 20th century. At the time of the neighborhood's demise in the mid-fifties, it had attracted some Mexican families as well. Although remembered with a certain nostalgia today, the former area was a true
slum. People and industries occupying the surrounding "upper" neighborhoods used the Hollow as a makeshift dump, which the inhabitants down below routinely scavenged for clothing, metals, building supplies, and even shoe repair needs. Several
gristmills operated on the creek by the 1850s. Railroad tracks were built along the creek in 1865 because the creek bed provided an easier grade up from the
Mississippi River than bluffs elsewhere. ==Destruction==