In July 1919, 25 men met at the Keystone City Hall to secure a charter for a local chapter of the American Legion. Officers were elected, and the post was named the Merkel Post 107 in honor of Mangus Merkel, the first serviceman from the Keystone area to die in World War I. The name was amended in 1949 to honor Luverne Bockholt, the first area serviceman killed during World War II.

Legion meetings for the Merkel-Bocholt Post 107 were a number of locations before the I.O.O.F. building was purchased in 1951. Over the years, rooms within the large facility have been rented for use as apartments, beauty shops, and a local doctor office.