Sharon Coolidge

scoolidge@enquirer.com

Mahogany's latest trouble with the state - trouble that prompted the restaurant to shutter for four days last week - was the last straw for its landlord.

The company which owns the restaurant's property on Tuesday, NIC Riverbanks One, notified Mahogany's owner, Liz Rogers, that she's served her last plate of shrimp and grits, according to a letter obtained by the Enquirer.

"Landlord has worked diligently with Mahogany's, concerned citizens, and the City of Cincinnati to do everything reasonably possible to make this lease a success, but the time has come to turn the page on this matter," wrote Tracy Schwegmann, of Jeffrey R. Anderson Real Estate, the Banks leasing agent.

Rogers did not return a request for comment Wednesday morning.

Her attorney, Rob Croskery, said the letter is "replete with misstatements."

"I think they want Mahogany's out there because of all the bad press," Croskerly said.

NIC Riverbanks, which owns the built portion of The Banks, declined to comment.

Mahogany's has been troubled from the start, prompting intense scrutiny. The former city administration lured Rogers to The Banks with taxpayer money in an effort to include a locally-owned, minority-owned business in the city's riverfront restaurant district. Rogers has repeatedly said the city has not lived up to its promises. There's no hotel on the riverfront and only now are a second phase of apartments and business being built.

The final straw: The state's shuttering of the business last week due to unpaid sales tax. Rogers reopened Saturday after working with the state, but it was too late. She already defaulted on her lease, which required Rogers to remain open during business hours, according to the letter.

Rogers also owes her landlord $22,620 in back rent, utilities and fees for missed payments. It's the second time this year she's fallen behind. In March she fell $56,000 behind, but caught up after the harsh winter.

Those debts are on top of what she owes taxpayers: About $34,000 in back payments on a $300,000 loan. Rogers still owes $266,646 on the loan. She got another $684,000 in the form of a grant. According to her agreement with the city, if she defaults on the loan -- and so far the city hasn't gone so far to say that -- should could be asked to re-pay the grant.

"We are currently evaluating this situation, including assessing the city's rights and remedies," interim City Solicitor Terry Nestor wrote in a Aug. 29 memo to the mayor and city council.

Unlike other businesses located at The Banks, Rogers' lease issues are shared with city officials because of her taxpayer loan. The money was used to purchase furniture, fixtures and equipment.

NIC's letter to Rogers outlined what happened during the time she was closed.

"During the period when Mahogany's was closed, the Cincinnati Reds played four home games and the Cincinnati Bengals played one preseason game," Schwegmann wrote. Mahogany's sits on land between the two stadiums.

Rogers failed to pay rent in August and September, according to the letter. Because it's the second time she has fallen behind, the landlord does not have to give her a chance to catch up on payments.

"Landlord is not required to provide Mahogany's any opportunity to cure this default and none will be granted," Schwegmann wrote. "Landlord is hereby notifying Mahogany's that it intends to terminate Mahogany's lease as soon as possible unless the City of Cincinnnati takes action under the consent agreement."

Under the agreement the city has 10 days from the date of the letter to take action.

The city could pay Roger's back rent, but even if it did because it's not the first default, it wouldn't keep the doors open.

NIC has pledged to work with the city, which owns the furniture and fixtures. Mahogany's, the letter said, will be permitted to remain open for 10 days while the city looks at its options.

If the city decides not to take action, "Mahogany's must close for business and vacate the premises immediately."

"Landlord hopes that Mahogany's will take this opportunity to wind up its business affairs and prepare to move," Schwegmann wrote.