REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Bill Krill, Real Estate and Project Manager
Subject:
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Acceptance of Quitclaim Deed from Spreckels Sugar Company, Inc. for Former Navy Railroad Right-of-Way
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Statement of Issue:
This request is for the City Council to accept a no-cost quitclaim deed from Spreckels Sugar Company, Inc., for the former Navy railroad right of way (ROW) located from Rancho Road on the west to the City boundary east of Springdale Street. The 9.3-acre property is 75-feet wide, approximately one-mile long and runs behind the rear yards of single-family homes and was formerly used by the U.S. Navy as a rail spur serving the Seal Beach Naval Weapons Station. This corridor has long-term potential for public-serving uses, including trails, utilities, and community green space.
Financial Impact:
There is no cost to the City to accept the quitclaim deed. The Public Works Department already maintains the property, and associated costs are included in the Department’s existing operating budget. Any future improvements or use of the site will be brought forward through a separate City process.
Recommended Action:
recommendation
Accept the Quitclaim Deed from Spreckels Sugar Company, Inc. for property located between Rancho Road and the City boundary east of Springdale Street, formerly used as Navy rail ROW (Attachment No. 1).
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Alternative Action(s):
1. Do not accept the quitclaim deed and maintain the current easement-only interest.
2. Direct staff to explore alternative options for acquiring the fee title at a future date.
Analysis:
Project Site
Background
The property has a long history tied to both military and agricultural uses. Originally, the land was owned by the Anaheim Sugar Company, which held large tracts of land in Orange County for sugar beet cultivation and processing. In 1944, during World War II, the U.S. Navy obtained an easement from the sugar company to construct and operate a rail spur connecting the Seal Beach Naval Weapons Station to inland rail lines. The corridor served as a key logistics route for transporting munitions and supplies for over 65 years.
Navy operations along the corridor ceased around 2010, and the tracks were removed in 2012. The land was declared surplus, and in 2016, the General Services Administration (GSA), acting on behalf of the Navy, quitclaimed the government’s easement interest to the City. The City Council formally accepted the easement on April 4, 2016, to preserve the corridor for potential public-serving uses, such as water infrastructure, trails, or passive open space.
The easement acquired in 2016 was limited to railroad purposes only. Although the easement was permanent and exclusive, it did not grant the City authority to use the land for any other purposes. Since the City had no plans to operate a railroad, the corridor remained legally restricted and underutilized.
Since the Navy relinquished its easement in 2016, the corridor has experienced ongoing issues with overgrown vegetation and illegal dumping. These conditions led to recurring code enforcement cases and prompted the Public Works Department to begin maintaining the property to prevent blight and safety concerns. Despite the City holding a permanent and exclusive easement since 2016, that easement is limited to railroad use, preventing any improvements or adaptive reuse.
To resolve this limitation, Real Estate staff identified the underlying fee title owner as Spreckels Sugar Company, Inc., successor to Anaheim Sugar Company. Staff reached out and successfully negotiated a voluntary quitclaim of the fee title at no cost to the City. This action would relieve Spreckels of any future liability or maintenance responsibility and ensure the City now has full ownership and control of the property.
There has long been interest in utilizing this corridor for public benefit. This acquisition would eliminate legal uncertainty and land use restrictions and enable the City to evaluate a range of community-serving uses, subject to future Council direction. These could include trails, public infrastructure, stormwater facilities, community green space, or sustainable urban agriculture.
For reference, the City of Westminster acquired its portion of the former Navy rail corridor in 2016 and is actively developing it into a multi-use trail and utility corridor. Their approach includes bicycle and pedestrian paths, native landscaping, and public art features.
Environmental Condition
In 2014, the City commissioned a Phase II Environmental Site Assessment (ESA) for the corridor, including soil sampling and laboratory testing at multiple locations. The assessment evaluated the presence of petroleum hydrocarbons, polycyclic aromatic hydrocarbons (PAHs), volatile organic compounds (VOCs), pesticides, and metals.
Key findings from the assessment include:
• No contaminants were found at levels that pose a threat to human health or the environment.
• Detected trace elements, such as arsenic and PAHs, were consistent with naturally occurring background levels in Southern California soils.
• No remediation or cleanup action is required.
• The site is considered environmentally suitable for public reuse, including infrastructure, trails, or open space development.
This action completes the City’s transition from an easement-only interest to full ownership, unlocking the corridor’s long-term civic potential and ensuring that future reuse can be aligned with Council goals and community needs.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Quitclaim Deed
2. PowerPoint Presentation