Mahogany's makes 1st payment to city

Liz Rogers made her first $800 payment to the city, making good on a promise to repay a taxpayer loan.

In March, Cincinnati taxpayers forgave nearly two-thirds of the $300,000 loan they gave Rogers to open the failed Mahogany's restaurant at The Banks.

Under the terms of the deal, Rogers must repay taxpayers $100,000 in monthly installments of $800. The first payment was due Monday. She paid money Friday, according to Rocky Merz, city spokesman.

Rogers previously paid $16,131. That means the city is forgiving about $183,869.

Rogers already relinquished to the city her agreement with The Banks, her mortgage on the property in Hamilton where her first restaurant was located and her life insurance policies.

In 2012, the city – in an effort to lure a minority-owned business to The Banks – lent Rogers $300,000 and gave her a $684,000 grant.

Rogers put her Hamilton restaurant up as collateral and personally guaranteed the loan.

The deal: Pay the loan back over 10 years. If she fell behind, she would repay the grant, too.

The soul food restaurant opened to great fanfare in October 2012 but quickly floundered. Rogers previously told The Enquirer the city didn't live up to its promise to put a hotel, a business and more residents in the development. She is seeking a new location in Over-the-Rhine.

Her first missed payment came in August 2013.

Cincinnati City Councilman Kevin Flynn had called for the city to declare Rogers in default on her loan and grant, but his fellow council members declined.