Toledo's living wage law could lead an Ann Arbor, Mich., restaurateur to abandon plans for a proposed Mediterranean-style restaurant in The Docks restaurant complex in East Toledo.

The lawyer for Mediterrano restaurant owner John Roumanis has told Mayor Jack Ford's staff the restaurant can't afford to pay the city's minimum “living wage” and still be competitive.

Mediterrano officials have been negotiating with the mayor's office to obtain incentives from the city, including tax abatement. Such financial assistance would trigger a requirement that the restaurant follow the city's living-wage law in compensating its employees.

The current minimum living wage in Toledo is $9.57 an hour plus medical benefits.

“However well-intentioned this ordinance was, its effect upon this proposed restaurant is devastating,” Phillip Bowen, attorney for Mr. Roumanis, wrote in a recent letter to city officials.

City council gave Mr. Roumanis approval in 2001 to open a restaurant in The Docks similar to his Mediterrano restaurant at 2990 South State St. in Ann Arbor, near the Briarwoord Mall.

Mr. Roumanis wants to raze a city-owned building between the former Hoster's - now being converted to a New Orleans-style restaurant - and the boat basin in International Park and construct a restaurant.

The proposed 7,500-square-foot restaurant would have a clay tile roof, arches, stucco, and other Mediterranean-style appointments to match the cuisine. Mediterrano's menu in Ann Arbor includes such items as lightly spiced shrimp cakes from the Spanish port city of Cadiz and Moroccan Seabass Fufarran, which is a fresh fillet of seabass marinated in Moroccan spices, seared and served with a traditional charmoula sauce of olive oil, lemon juice, garlic, cilantro, paprika, hot peppers, cumin, and cayenne.

Without city economic assistance, Mr. Bowen indicated, the proposed restaurant may not be feasible. The deal being negotiated between Mediterrano and the city would involve Toledo demolishing its building, constructing additional parking spaces, and making a $100,000 low-interest loan.

Mr. Bowen said more than half the employees at the proposed restaurant would be part-time. He said the only full-time jobs will be for those working in the kitchen.

“The restaurant business has its own set of economics, and a restaurant paying a living wage to every employee cannot be competitive with other restaurants who do not have the same payroll requirements,” he wrote.

Mayor Ford was not available for comment yesterday on the Mediterrano situation, the latest hitch involving a restaurant in The Docks complex and the city's June, 2000, living-wge ordinance.

Two Docks restaurants that received tax abatement after the law went into effect, Zia's and the former Hoster's, have been told they must comply with the law. However, enforcement has been held up while the law department reviews the case. Questions also have been raised about whether the living-wage law will apply to businesses that open in the Marina District.

Through his public information officer, Megan Vahey, Mayor Ford issued this statement about the Mediterrano negotiations: “We've received the letter [from Mr. Roumanis' attorney] and we're looking into it.”

Previously, the mayor had indicated that it is council's responsibility to consider amendments to the living-wage law.

Council President Peter Ujvagi said he was aware of the Mediterrano problem.

“There's a lot of discussion that has to take place on that,” he said. “It has to take place in context of The Docks and the [proposed] Marina District, as well as how it affects the competitiveness of our other restaurants in the community.”

Don Monroe, executive director of the River East Economic Development Corp., said he believes there is room for compromise.

One solution could be an amendment to the living-wage law to exempt part-time employees, Mr. Monroe said. The law already exempts seasonal employees.

“I think there's room to make this deal work,” he said.

First Published September 28, 2002, 1:21 p.m.