Since 1861 Kostelec has a post office, side roads provide faster connection with the neighbouring villages. In 1862 there was built a savings bank in Kostelec, and later a municipal savings bank as well. After having requested it repeatedly, is Kostelec promoted to the town and the Board of trade allows it to use an attribute “Red”, which is already established at this time. The name was officially accredited in 1881. The townsfolk, being more and more self-confident, started living an intensive social and cultural life.
The town was not even behind in the development of the education: in 1882, there was opened an independent girl elementary school, in 1887 a citizen school, from which in 1891 a girl citizen school originated too. A new building of the girls` school was consecrated in 1889.
In 1864 the amateur theatricals` company was established, which continued in more than 50-year history of the amateur theatre. At the same time, a town’s band was forming (1863) and in 1896, the choir Záboj was established as well. In 1874, the volunteer fire company was established and ten years later the Sokol sports union. A big credit of the town’s appearance had a Beautifiers` club established in 1889. As a result of a development of an entrepreneurial activity was the foundation of the Traders` club (1885) and the Czech stenographers` club (1887). An evidence of a successes of the Czech entrepreneurial activity and a strength of the entrepreneurs in Červený Kostelec, was its holding the regional exposition in summer 1899 in the area of current theatre and school. In 14 pavilions was presented, among others, an advanced production in Červený Kostelec.
In the years 1880 –1910, the population growth rate in Červený Kostelec reached its maximum. It grew from 2695 to 4422 people. Similarly, the number of houses has almost doubled.