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Yesterday, the California Transportation Commission (CTC) approved the acquisition of a Santa Cruz branch line from Union Pacific Railroad for $13.8 million, as well as a commitment to make $5 million in line improvements.

The transaction signals that all requirements for the purchase and use of voter-approved Proposition 116 funds have been met, and that the Santa Cruz County Regional Transportation Commission (RTC) can finalize the agreed-upon deal with UP, said RTC officials in a prepared statement.

The line acquisition is part of a plan to change the 135-year-old transportation corridor from private freight to public use. The corridor spans the length of Santa Cruz County "through many prime activity areas, parallels the congested Highway 1 corridor, and if lost, would be impossible to reassemble given high population densities and development between the mountains and the coast," RTC officials said.

In June 2010, the CTC unanimously approved the deal contingent upon RTC meeting several conditions: execute an agreement between RTC and the operator, Sierra Northern Railway; commit to initiating passenger-rail service; commit to continuing freight-rail service for as long as would be required by the Surface Transportation Board; commit to being responsible for hazardous waste cleanup; reimburse the CTC should the RTC stop using the branch line; and explain the methodology for the property's appraised value.

Funding for the purchase and improvements will come from Proposition 116, the region's share of State Transportation Improvement Program dollars and $1.5 million in federal monies.

Approved by voters in 1990, Proposition 116 designated $11 million for rail projects in Santa Cruz County.