In March of 1962, the Michigan District of The American Lutheran Church began a merger study to determine if St Matthew Evangelical Lutheran Church and St. Mark’s Lutheran Church of nearby Ida should be joined into one congregation. Following an intensive two year study, the two churches held votes on the merger plan. The congregation of the 103 year old St Matthew Church voted 75 to 15 in favor of merger on Sunday, May 17, 1964. The next Sunday, St. Mark’s voted 110 to 9 to merge into one congregation.

The official organization of the new congregation took place at a joint meeting held at the Ida Elementary School on August 23, 1964. The name, Prince of Peace, was chosen and a Constitution was adopted. Fourteen members were elected to the Church council. The combined congregation consisted of 522 baptized and 372 confirmed members.

The Reverend Don F. Thomas, pastor of the former St. Mark’s, was called to become the first pastor of Prince of Peace, a position he still maintains. Pastor Thomas was officially installed on September 27, 1964.

Architects were hired to design a new church. On November 22, 1964, the congregation voted to purchase the Allison Kurtz property of approximately 8 acres on the southwest corner of Lewis Avenue and West Dunbar Road as the site of the new church. Construction was completed in 1967 and the church was dedicated on June 4, 1967.