LOL Shocking.

The city council members that supported the grant and loan to this business should be thrown out of office. No questions asked. If you gamble with taxpayer money and lose, you should face some sort of consequence.

Quote:“Please do not judge us by our unfortunate past credit history,” Rogers wrote in a 2011 e-mail to city officials. “It's been a tough few years but I am positive we will be able to turn this around. The future looks very promising.”

SMH

Tax problems shutter Mahogany's
Sharon Coolidge and Jason Williams, jwilliams@enquirer.com 9:53 a.m. EDT August 27, 2014


(Photo: The Enquirer/Jeff Swinger )

The state shut down long-troubled Mahogany's restaurant for failing to pay its taxes, but the owner called Tuesday's closure a misunderstanding and said she'll reopen on The Banks within days.

Already in the works, said Mahogany's owner Liz Rogers: New management, a new menu and ongoing conversations with Cincinnati city officials about repaying a taxpayer loan on which she has fallen $28,000 behind.

The state tax commissioner posted a pink notice on the front door of the restaurant that said the business is under suspension for failing to pay its sales tax.

It's the latest twist in a troubled two years for Mahogany's, which has struggled to pay its bills since opening to great fanfare in July 2012.

The Ohio Department of Taxation did not disclose the amount of taxes Mahogany's owes. State spokesman Gary Gudmundson said the state typically shuts down a business if it fails to pay taxes for two consecutive months or three total months in a year.

"When it gets to a posting, it's not a surprise to the business," Gudmundson said.

Mahogany's attorney Rob Croskery, however, said the state did not properly notify Mahogany's of a hearing. He said the issue "should be cleared up in the next day or two."

Still, the restaurant faces other financial hurdles. Mahogany's is behind $28,000 in repayments to the city, which gave the restaurant nearly $1 million in grants and loans in March 2012.

Rogers said her restaurant is merging with a restaurant management group and will have new business partners to "make it financially viable." She did not disclose the new partners, but said she will remain the owner. The restaurant still will serve Southern-style food, but plans to improve the menu with fresher ingredients.

"It's time for our hard work to start paying off," Rogers said. "I am working with the city; that is what the merger is about. I'm working toward having my life back."

The state requires all delinquent tax money to be paid in full before re-opening, Gudmundson said. The state issues nearly 1,000 shut-down notices to businesses each year, and has a program that works with businesses that repeatedly struggle to pay taxes on time. The city also is trying to help Mahogany's.

"We have been in discussions with (Rogers) and her new investment team," city spokesman Rocky Merz said. "We want to work with her on a plan that allows her to succeed and gets her debts paid."

Mahogany's has been scrutinized since the city gave the restaurant a $684,000 grant and $300,000 small-business loan. The money was to be used to improve its building on East Freedom Way and buy furniture, fixtures and equipment and have working capital.

The 10-year loan, on which Rogers pays $3,000 a month, called for Rogers to invest at least $50,000 of her own money. Enquirer research showed she did.

The money was part of an incentive package the city created to lure a minority-owned business to the high-profile riverfront development. City Councilman Christopher Smitherman and many citizens have been critical of the administration of former Mayor Mark Mallory for giving a business such a large amount of taxpayer money.

Rogers fell behind on her loan payment earlier this year. She attributed the financial struggles to the brutally cold winter and an overall slow start for The Banks, which hasn't drawn the expected visitors. The development does not have a hotel, and it has not become a significant entertainment destination on days the Reds and Bengals aren't playing.

Critics of the Mahogany's deal weren't surprised by Tuesday's move.

"The near $1 million Mahogany's deal had all the obvious red flags that any underwriter in the private sector would have noted as a cause for rejection," Smitherman said. "The Mahogany's deal was the ultimate march of folly."

http://www.cincinnati.com/story/news/201.../14651081/

Mahogany’s money woes detailed in court records
Sharon Coolidge, scoolidge@enquirer.com 6:02 p.m. EDT August 27, 2014



A torrent of court records since 2012 show Mahogany’s – which the state shuttered this week for unpaid sales tax – has a history of unpaid state taxes and fees.

The records show at one point Mahogany’s owner Liz Rogers owed Ohio taxpayers at least $61,338, the Enquirer found.

Rogers’ lawyer, Rob Croskery, told the Enquirer Wednesday that Rogers owes only about $17,000 – which is what she’ll need to re-open after the state shut her down for failure to pay sales tax.

Croskery said he’s looking into the possibility that the state overlooked a payment Rogers sent earlier this month. He believes the matter could be cleared up – and the restaurant reopened – by the end of the week.

The restaurant sits in a prime location in The Banks, the city’s riverfront development. City taxpayers acted as the restaurant’s investors, providing nearly a $1 million in startup money.

The $61,338 owed the state is on top of the past due amount of $31,796 that Rogers owes Cincinnati taxpayers on her $300,000 small business loan, part of the $1 million she got from the city. City officials continue to work with Rogers on a repayment schedule.

In all, Rogers has owed taxpayers $109,552, the Enquirer found after researching court and city records.

A look at the past-due debts:

• Tax lien cases against Mahogany’s total $61,338, though she has made payments on those, Rogers previously told The Enquirer.

• The State Bureau of Workers Compensation filed claims against Mahogany’s for another $16,418. Those cases remain open.

• And, she owes the $31,796 to the city, a figure city officials updated Wednesday. The $31,796 in overdue payments is part of a larger amount - $266,646 - that she will eventually have to repay on the city’s $300,000 loan.

Some of the problems stem from her former City of Hamilton-based Mahogany’s, which Rogers closed when she brought her soul food cooking Downtown.

The state shut down The Banks restaurant Tuesday for failing to pay its taxes, but Rogers called the closure a misunderstanding and said she’ll reopen within days.

The state tax commissioner posted a pink notice on the front door of the restaurant that said the business is under suspension for failing to pay its sales tax.

The Ohio Department of Taxation did not disclose the amount of taxes Mahogany’s owes. State spokesman Gary Gudmundson said the state typically shuts down a business if it fails to pay taxes for two consecutive months or three total months in a year.

“When it gets to a posting, it’s not a surprise to the business,” Gudmundson said.

It’s the latest twist in a troubled two years for Mahogany’s, which has struggled to pay its bills since opening to great fanfare in July 2012.

Gudmundson said his office estimates 75 percent of businesses the state shutters pay up the same day; after all, being closed means no revenues are generated.

Rogers could not be reached for comment Wednesday. She exclusively told the Enquirer Tuesday that she has a plan that includes new management, a new menu.

“It’s time for our hard work to start paying off,” Rogers said in that Enquirer interview. “I am working with the city.... I’m working toward having my life back.”

The state issues nearly 1,000 shut-down notices to businesses each year and has a program that works with businesses that repeatedly struggle to pay taxes on time.

Mahogany’s has been scrutinized since the city gave the restaurant a $684,000 grant and $300,000 small-business loan in 2012. http://www.cincinnati.com/story/news/pol...t/6813267/ The money was to be used to improve its building on East Freedom Way and buy furniture, fixtures and equipment and have working capital. The 10-year loan called for Rogers to pay $3,000 a month.

The money was part of an incentive package the city created to lure a minority-owned business to the high-profile riverfront development.

Rogers fell behind on her loan payment earlier this year. She attributed the financial struggles to the brutally cold winter and an overall slow start for The Banks, which hasn’t drawn the expected visitors. The development does not have a long-promised hotel, and it has not become a significant entertainment destination on days the Reds and Bengals aren’t playing.

http://www.cincinnati.com/story/news/pol.../14706591/

Were other restaurants at the banks given grants and loans ?

you know they were. toby keith's will be next.

(08-28-2014 06:05 AM)beck Wrote:  you know they were. toby keith's will be next.

We're they? I'm seriously asking. And why do we know the amounts given to mahoganys and not the others?

(08-28-2014 06:05 AM)beck Wrote:  you know they were. toby keith's will be next.

Have to agree.

CRAVE
Holy Grail
Jefferson Social
Jimmy John's
Johnny Rockets
Mahogany’s at The Banks
Orange Leaf
Police Welcome Center
Ruth’s Chris Steakhouse
Tin Roof
Toby Keith’s I Love This Bar
WG Kitchen & Bar
Yard House

In no way am I rooting against The Banks, but a large concentration of restaurants in an area where nothing is going on for half the year, is a recipe for failure.

Plus, the Moerlein Lager House sucks up much of the potential Banks business.

(08-28-2014 08:13 AM)BeerCat Wrote:  

(08-28-2014 06:05 AM)beck Wrote:  you know they were. toby keith's will be next.

We're they? I'm seriously asking. And why do we know the amounts given to mahoganys and not the others?

My understanding is the city extended LOANS to other developer that were vying to bring tenants in to the banks. For example a couple Atlanta developers were extended a 5.5 million dollar loan to bring in Toby Keiths. (Key here is that the loan went to the real estate developer and not the tenant.)

I believe Mahogany's is the exception because they received 684K in GRANT MONEY as well as 300K in City loans to develop Mahogany's. Yes that means the city decided that you and I and every other taxpayer should literally give a business 684K - plus be on the hook for 300K more if they should happen to fail.

But don't worry Chris Seelbach and the liberals faction on City Council did the due diligence. Despite only being able to commit 50K of their own money to the deal, Mahogany is seriously rock- solid, investment grade.

Quote:“This is an exception for how we award grants and loans,” said Councilman Chris Seelbach. “The city has done its research to ensure this business knows what it’s doing.”

Correct Ctip. Also Liz has no idea how to run or manage a restaurant. She charges a $10 cover on weekends with no entertainment, this keeps people out LOL. There are times when every place is packed at night except her joint. Comisar to the rescue!

(08-28-2014 12:09 PM)SuperFlyBCat Wrote:  Correct Ctip. Also Liz has no idea how to run or manage a restaurant. She charges a $10 cover on weekends with no entertainment, this keeps people out LOL. There are times when every place is packed at night except her joint. Comisar to the rescue!

Is it beyond the realm of belief that she may be "encouraging" the restaurant's demise? Mishandling of monies is covered up? She is free and clear of the whole fiasco?

Comisar comes in and takes over?

(08-28-2014 05:29 PM)OneUChoopsfan Wrote:  

(08-28-2014 12:09 PM)SuperFlyBCat Wrote:  Correct Ctip. Also Liz has no idea how to run or manage a restaurant. She charges a $10 cover on weekends with no entertainment, this keeps people out LOL. There are times when every place is packed at night except her joint. Comisar to the rescue!

Is it beyond the realm of belief that she may be "encouraging" the restaurant's demise? Mishandling of monies is covered up? She is free and clear of the whole fiasco?

Comisar comes in and takes over?

comisar? is that a new airline coming to cvg? oh. i still feel there's a joke in there

(08-28-2014 07:44 PM)Lush Wrote:  comisar? is that a new airline coming to cvg? oh. i still feel there's a joke in there

(08-28-2014 08:30 PM)Billy_Bearcat Wrote:  

(08-28-2014 07:44 PM)Lush Wrote:  comisar? is that a new airline coming to cvg? oh. i still feel there's a joke in there

You should have posted the original Der Kommisar from Falco. "Hey you want to buy some stuff man" that line always cracks me up.

SW, I don't think Falco ever did an English video version.

(08-28-2014 07:44 PM)Lush Wrote:  

(08-28-2014 05:29 PM)OneUChoopsfan Wrote:  

(08-28-2014 12:09 PM)SuperFlyBCat Wrote:  Correct Ctip. Also Liz has no idea how to run or manage a restaurant. She charges a $10 cover on weekends with no entertainment, this keeps people out LOL. There are times when every place is packed at night except her joint. Comisar to the rescue!

Is it beyond the realm of belief that she may be "encouraging" the restaurant's demise? Mishandling of monies is covered up? She is free and clear of the whole fiasco?

Comisar comes in and takes over?

comisar? is that a new airline coming to cvg? oh. i still feel there's a joke in there

No he is going to run the restaurant. God I hated that new wave crap from the 80's.

(08-28-2014 10:57 PM)Billy_Bearcat Wrote:  SW, I don't think Falco ever did an English video version.

There is a little bit of English in his video. That line I mentioned and he says "rapping to the beat" a few times.

(08-28-2014 09:57 PM)SW UC Wrote:  

(08-28-2014 08:30 PM)Billy_Bearcat Wrote:  

(08-28-2014 07:44 PM)Lush Wrote:  comisar? is that a new airline coming to cvg? oh. i still feel there's a joke in there

You should have posted the original Der Kommisar from Falco. "Hey you want to buy some stuff man" that line always cracks me up.

Holy Crap! I thought the only hit Falco had was "Amadeus". Had no idea he was the genius behind Der Kommisar. That 80's chic was hot.

http://www.cincinnati.com/story/news/pol.../14986811/

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.

[...]

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 $689,000 in the form of a grant.

Read more: http://www.urbanohio.com/forum2/index.ph...z3CGoPMtCN

Mahogany's to city: Let's make a deal

Mahogany's owner Liz Rogers -- who was forced to close her restaurant on The Banks Friday -- wants to make a deal with the city.

Rogers, in a letter from her attorney to the city dated Sunday, proposed that city officials forgive her loan and sell the restaurant's furnishings for $12,000. In exchange, she'll move elsewhere in the city and won't participate in any public protests.

If the city doesn't accept the deal, Rogers suggests she would sue the city.

The city has until Sept. 18 to accept this deal, the letter said.

The letter comes after weeks of problems: She's fallen behind on her $300,000 taxpayer loan; was briefly shut down by the state for failure to pay sales tax; and her landlord, NIC Riverbanks One, accused her of defaulting on her lease.
http://www.cincinnati.com/story/news/pol.../15627005/