The other 15 percent is up in the air - as property owners demand more money. And now there's a lawsuit.

Jerry Tzakis, owner of the Mad Greek restaurant, 171 N. Redwood, is suing Salt Lake City, along with former and current property owners of the land he leases, after he was notified he would have to clear out by March 31 to make way for the new development.

But Tzakis has a lease through 2028 and has pumped $135,000 into the building.

"He has the right to stay, or he has the right to be relocated . . . under the same terms where he is without any expense to him, or that he be bought out," Tzakis' lawyer, Jeff Swinton, said this week.

But Salt Lake City inked a development agreement in 1997 with the land's previous owners that orders the property to be vacated and sold if a large-scale commercial development comes along.

Such a development has appeared, in the form of a 160,000-square-foot retail project anchored by a Mexican supermarket. California-based Legaspi Co. is proposing the project near Sutherlands.

Tzakis and current landowner Gary Chun say they weren't told of the previous development deal.

That's unfortunate, says broker Vasilios Priskos, who has been assembling property at Redwood and North Temple and would sell it to Legaspi. But, he adds, the "agreement with the city and [previous] landowner is memorialized in writing. Everybody should have known about that."

Legaspi is seeking help from the city - in the form of a $2.1 million loan and a $1.5 million sales-tax rebate - to cope with the land costs.

While some west-siders have complained about the subsidy and the the planned grocery store being Mexican, they also complain about the lack of retail services in their neighborhoods, noted Alison McFarlane, the mayor's economic development adviser who supports the project.