A $1.15-million land write-down was recommended for approval by the community development commission this week, but not after some members grilled Stockyards Business Center, LLC officials about their ability to meet requirements to hire minority-and women-owned subcontractors for the $6.26-million project.

Commission members also questioned the size of the write-down in relation to the benefits to the city. Besides creating an estimated 83 jobs, the developers have offered to make donations to local school and youth groups.

However, the city is obliged by Internal Revenue Service rules to give the land away for a nominal fee because it acquired the 228-acre Stockyards redevelopment area with a $20-million tax-exempt bond issue.

In addition to the land write-down, however, the city also is agreeing to support Stockyards Business Center, LLC's request for a Class 6(b) property tax incentive. Instead of being assessed at 36% of market value, the industrial property would be assessed at 16% for 10 years, increasing up to the full 36% during the 11th and 12th years.

The project brings much-needed industrial space to the city, says department of planning and development commissioner Alicia Berg, as well as returns to the property to the tax rolls.

"We've been trying real hard to find sites in the city," says McShane executive vice president James E. McGill. "The users that we work with, they want to stay in the city, but can't find land."

While McShane will be the general contractor handling the construction end of the project, leasing and management eventually will be overseen by selected Grubb & Ellis brokers who join the venture.