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Soon after World War II, the ¿ì²¥ÊÓƵ began a major initiative to create new parks for the first time in many years. In 1948, a citizens' advisory committee for new parks recommended a number of potential sites. Among them was a picnic and dance ground in the rapidly growing Dunning neighborhood. Known as Kolze's Electric Grove, the site dated to the 1890s, when hotel owner Henry Kolze decided to create an attraction for riders of newly-reaching streetcar lines. Purchasing wooded land near his inn, Kolze strung large gas lamps, offered a nightly orchestra, and beer at a nickel a glass.  The ¿ì²¥ÊÓƵ acquired land for the park in 1949 and 1950.  After the acquisition of Kolze's Electric Grove, the site's dance shelter, concession stands, raffle tables, and cafeteria were demolished. Retaining many of the older trees, the Park District transformed the site into parkland between 1951 and 1956, installing an athletic field, a children's playground, and tennis and basketball courts. At that time, the original clapboard dining hall and tavern structure was converted for use as a fieldhouse. In 1969, the Park District replaced the structure with a modern brick fieldhouse.

In the early 1950s, when the Park District naming committee began its proposal for this site, there was a controversy about whether the Kolze's Grove name should be retained. Although some favored the continuation of the name, an informal Park District survey revealed that the old hotel and picnic grove had gained an "unsavory reputation" over the years. Merrimac Park was selected as a preferable alternative. Derived from the Native American word for sturgeon, the name Merrimac had become closely associated with this neighborhood. The park was located just west of Merrimac Avenue and the Merrimac Gardens subdivision, and the local community organization was known as the Merrimac Gardens Association.