This is totally off the cuff:
I was thinking before Lynch - the first scene maybe even tell the whole story with the Osage Indians and Devil's Den. A boy and a bear fall into the cave. Later, Spanish explorers are on the scene, looking for the Fountain of Youth. Finally Marmaros is born, and miners are in the cave figuring out it isn't what they were hoping (Insert bat guano jokes here.). Red Flanders is a slick mogul in the hotel biz. Yet he rips off the wrong people, the law won't do anything about his wheelings and dealings, so his adversaries turn to the Bald Knobbers. A fire gets out of control and burns the entire city in a dramatic scene. What's left is the charred remains, which - through the magic of holography, suddenly reappear in glory as Silver Dollar City for a grand finale.