Council member Kevin Flynn asks council to declare Mahogany's in default
CINCINNATI, OH (FOX19) - Council member Kevin Flynn has filed a motion asking Cincinnati City Council to declare Liz Rogers' Mahogany's restaurant in default.
This motion is in response to a memorandum City Manager Harry Black sent out last week asking council to move forward following his meeting with Rogers.
In her meeting with the City Manager, Rogers asked that the City reduce her outstanding loan amount to $115,000 with no payments until after the loan restructuring. The minimum monthly payment would then be $800 per month for a term of 12 years with payment beginning in July 2016.
She also asked that council release the City's collator al of the mortgage and lien on her Hamilton property as well as keep the City's collateral on her life insurance policy in the amount of outstanding loan portion of $115,000.
Lastly, she asked that the City sell her the furniture and equipment for $8,000 so that she can store it for future use.
Council member Flynn's motion contradicts her wishes, instead asking that the City declare the restaurant in default "to maximize the return to the City of Cincinnati of the monies advanced by the City to or on behalf of Mahogany's."
Flynn asks that the City also accelerate the loan and declare the entire principal and interest to be immediately due.
The motion states that the City should demand that Mahogany's turn over all written materials, records, invoices and other documents pertaining to the restaurant as well as copies of all third party contracts Mahogany's entered in to.
Flynn also recommends that the city demand repayment of all funds disbursed to or on behalf of Mahogany's from a Capital Project Account and commence foreclosure of the mortgage on the Butler County business property.
Flynn calls that Rogers, and her husband Trent Rogers, guarantee the amounts owed under the loan agreement and the grant agreement.