This is episode 221. In 1962, Herk Harvey saw a strange sight in Salt Lake City and was inspired to make a film called Carnival of Souls. It was a film made with a micro-budget, mostly filmed in Lawrence, Kansas with a little more in Utah. After being ripped off by a distribution company, the film fell into obscurity only to become a cult classic in the late 1980s.

LInks to the Sources I used to write this exciting episode:
Interview with Carnival of Souls' director Herk Harvey (YouTube)
Centron Films Camera - Kansaspedia
It Came from Horrorwood: Interviews with Moviemakers in the SF and Horror By Tom Weaver
I Was a Monster Movie Maker By Tom Weaver
Herk Harvey 1983 (YouTube)
Carnival of Souls (Wikipedia)
Herk Harvey (Wikipedia)