Why did the Spanish found Santo Domingo in 1496?

Bartholomew Columbus founded Santo Domingo in 1496 to serve as the capital of the first Spanish colony in the New World. Originally named Nueva Isabela in honor of Queen Isabella I, the city was established on the eastern bank of the Ozama River on the island of Hispaniola.1

Following its founding, the city functioned as the administrative seat of government for Spanish possessions in the Americas and became the primary starting point for subsequent expeditions of exploration and conquest throughout the West Indies and the adjacent mainland. Although the original site was destroyed by a hurricane, the city was rebuilt in 1502 at its current location on the western bank of the river.1