In 1796, the General Assembly passed a law authorizing the extension of Light Street to the south so as to join it with Forest Street into one, new Light Street. Once extended and filled behind, Light Street would be the second leg in the conversion of the harbor basin into a rectangle. Venture capital to accomplish this was not forthcoming until after Baltimore was incorporated as a city.134 XXII. The Incorporation of Baltimore City The Maryland General Assembly incorporated Baltimore City in 1796. The mayor and city council became the governing body. The newly created body politic assumed control over matters of sanitation, and police and fire protection for the twenty thousand inhabitants. The port wardens were abolished as the municipal corporation took charge over port development.135 By 1796 there about three thousand five hundred dwellings. Yellow fever epidemics in Fell's Point determined that original Baltimore Town would be the preferred residential growth area.136 Once builders discovered the excellence of local clay Baltimore became a bricks and mortar town. Wealthy merchants constructed distinctive townhouses along Calvert and Gay streets, and speculative builders built rowhouses all around the basin. Economies of scale and of space saved rowhouse builders up to twenty-five per cent of the construction cost. The ground upon which most of the new middle-class and working class houses were built was leased for ninety-nine years, renewable forever, 51 .