Liberty Gathering Place was established in 1995 in the former Dajolee's Restaurant location. Before Dajolee's, the restaurant was called The Betty Lane Restaurant, which opened in 1941 and was run by Cora Saltz. In 1958, the restaurant was sold to Rose Emma Smith and her son Dan. The name was changed to Dajolee's, which was the first 2 letters of Rose Emma's son's names (Dan & John), and the middle name of Jerry Lee.

In the early 1970's, the Smith's purchased the adjoining building, which housed the former Kirby Hatchery. Dajolee's was expanded to include the banquet room.  After 23 years, the Smith's sold Dajolee's to Delbert and Kathy Fullencamp, who at the time, also owned The Graystone Restaurant in West Liberty.

In 1995, Cindy Oelker purchased Dajolee's from the Fullencamp's. Cindy had been operating The Graystone Restaurant since 1988 for the Fullencamp's.  In April of 1995, the entire operation was moved to the Dajolee's location and The Graystone Restaurant closed its doors.

New owner Cindy Oelker wanted to establish a new name for the restaurant, and after consulting with her customers, it was decided to name the new restaurant "Liberty Gathering Place" because it's the place where people would gather in downtown West Liberty.