Once it became known that the Fernley & Lassen Railroad would be constructed through the Honey Lake Valley, it made the region a virtual paradise for real estate promoters. Three towns were plotted out—Leavitt, Litchfield and Stacy, the latter being in the eastern part of Honey Lake Valley between Amedee and the Nevada Stateline.
On April 19, 1913, the Lassen County Board of Supervisors approved the Stacy townsite. The town’s founders, the Spoon Brothers—Frank and Andrew—and Doctor B.B. Bolton envisioned great possibilities, such as the development of a major shipping facility for the region’s start up sugar beet industry. Prior to the railroad development, numerous homesteaders had arrived in part of the dry farming experience, and that of the Standish Water Company’s reclamation plan to use water from Honey Lake to transform the area into a major sugar beet region.