McFarland says frontage-road land swap yielded $130,000 net benefit; council approves 5-year gym lease

The City of McFarland presented a summary of a land exchange completed Aug. 1, 2024 that transferred an 18-acre parcel on Elmo Highway in exchange for a frontage-road property appraised at $680,000, producing a city-reported net benefit of $130,000.
City staff member Paul Saldana said the city had originally purchased the Elmo parcel for $500,000 and subsequently accepted land offered at Mast and Taylor for the police department. The exchange required compliance with the California Surplus Land Act and review by the California Department of Housing and Community Development (HCD). “On June 10, we received confirmation from HCD that the property qualifies as exempt surplus land and that the city would be able to move forward with that exchange,” Saldana said.
The city’s financial accounting for the transaction, as described at the Aug. 13 meeting, showed the Elmo parcel valued at $500,000 plus an additional $50,000 paid by the city for building improvements on the frontage parcel; the frontage parcel’s appraisal value was listed at $680,000. Those figures yield a net gain of $130,000 in value, according to Saldana.
Why it matters: City officials said the swap places property intended for public use where it will better support commercial development and gives the city improved access to utilities and freeway frontage, which staff said better aligned with the general plan.
Planning commission oversight: Jay Hernandez, chair of the Planning Commission, told the council the commission conducted due diligence and asked “quite a few” questions before recommending the exchange. “At the time when the process began, it was intended to be for the police department,” Hernandez said. “...it was weighed out, and the decision was made based on the facts that were presented.” Planning commission member Jim White also said the presentation made transparent the facts and that he saw “nothing illegal going on.”
Correction to prior wording: During the council meeting, the mayor asked staff to correct an earlier description that the donated parcel had been a donation; the mayor said the 18 acres were purchased for $1. Paul Saldana accepted the correction on the record and adjusted the accounting accordingly.
Related lease approved: Later in the meeting the council voted to approve Resolution No. 2025-1-14, authorizing a lease with Domain X Gym for 974 Frontage Avenue. The lease approved by roll call provides for a 15-month rent-free period followed by months 16–60 at $1,000 per month; the tenant will be responsible for tenant improvements, insurance, utilities and operational costs. Owner Xavier Perez described planned tenant improvements and a mezzanine to host a barbershop and a nutrition store and said the gym operates 24/7 with an automated check-in system.
Action and vote: The lease resolution was adopted on a recorded roll-call vote (Mary Young—aye; Vice Mayor O'Connell—aye; Councilor Gonzalez—aye; Councilor Perez—aye; Councilor Gutierrez—aye). The motion passed.
What remains open: Staff said additional frontage-road property transactions and tenant arrangements will be brought to council in coming months as part of an economic-development push.