Sharon Coolidge

scoolidge@enquirer.com

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City bosses made it official: They're not going to help Mahogany's owner Liz Rogers out of a lease dispute, meaning she'll likely close at The Banks for good Friday.

And Cincinnati City Manager Harry Black went a step further. The city, he said, is getting out of the restaurant business.

In a letter to The Banks leasing agent, sent Thursday and obtained by The Enquirer, Black wrote that the city will continue to work to attract and retain small businesses.

But, he added, "Unfortunately, the city's experience with Mahogany's illustrates the inherent risk in the restaurant industry. As such, while the city will work with the landlord and Mahogany's to wind down operations amicably, the city does not intend to extend further financing for similar enterprises."

Mahogany's and the city have come under fire since council brought the restaurant to The Banks with $1 million in taxpayer help in an effort to include a minority-owned business in the riverfront development. After a strong start Rogers struggled, leading to money woes with the city, state and her landlord. The state even briefly shut her down.

Rogers' current troubles are two-fold: Her landlord, NIC Riverbanks One, has accused her of defaulting on her lease and asked her to vacate the premises and she's fallen behind on payments on her $300,000 loan from city taxpayers.

The city could have stepped in, paid Rogers' back rent and taken over; but it wouldn't, as outlined in the letter to The Banks' leasing agent, Jeffrey R. Anderson Real Estate.

"This is an unfortunate situation for all parties," said city spokesman Rocky Merz. "The City does not intend to intervene in the ongoing dispute between Mahogany's and the landlord. If the restaurant permanently closes at the Banks, the City hopes, and intends to work collaboratively with both sides to protect City assets."

Rogers said Tuesday during a press conference she hoped to move; possibly to Over-the-Rhine, the Enquirer learned. She pledged to stay open until she found a new home. Her vacate notice suggests Friday would be the last day. She was closed on her own accord Thursday.

In the letter, Black asked that the city be given time to retrieve what is inside of Mahogany's -- equipment, tables, chairs and decor -- purchased with taxpayer money. A similar request was sent to Rogers.

"I want to thank those who supported the vision of an African-American woman coming to The Banks," Rogers said on Tuesday. who was surrounded by clergy, friends and employees as she spoke from inside the restaurant. "We created a new destination ... and over 50 jobs and brought a desired diversity to Cincinnati's most visible development."

In 2012, Cincinnati Council loaned Rogers $300,000 and gave her an additional $684,000 in grant money.

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 an office tower under construction.

She's fallen $34,000 behind on loan payments to the city and in late August the state shut her down for four days after she failed to pay sales tax. She re-opened only to find her landlord, NIC Riverbanks One, was upset.

"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, in a Sept 2 letter obtained by The Enquirer.

Rogers owes $22,620 in back rent, utilities and fees for missed payments, the letter said. It's the second time this year she's fallen behind. In March she fell $56,000 behind.

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