Council: Don't single out Mahogany's for default

Cincinnati City Councilman Kevin Flynn wants the city to declare the owner of Mahogany's in default on her loan and grant, but his fellow council members said it's not fair to single out just one person for failing to live up to an agreement.

At Council's Budget and Finance Committee Tuesday meeting a majority of council members shot down Flynn's suggestion, killing the idea.

Last October, in the wake of Mahogany's closing at The Banks after owner Liz Rogers fell behind on her rent, Flynn made the motion for the city to declare Rogers in default of her loan and grant. He also wanted to initiate foreclosure on Rogers' Butler County restaurant, which is collateral on the city loan.

Rogers has not made a payment on her $300,000 loan from taxpayers since last July. She still owes taxpayers $283,869, according to city documents related to her loan.

Councilman Charlie Winburn, chairman of Council's Budget and Finance Committee, said if Council was going to foreclose on Rogers, every business owner indebted to the city should .

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.

Rogers' landlord at The Banks, NIC Riverfront One, shuttered Mahogany's in September.

Last month the Holy Grail, which was Mahogany's neighbor at The Banks, announced it would expand into that space with an Italian concept. Santo Graal, a 3,250-square-foot restaurant, will offer fresh, traditional Italian fare.

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