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  • Letter To NIC

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    Justin Duke
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    The City Manager sent a letter to the landlord and Mahogany's restaurant notifying them that the City would not take action to prevent the termination of Mahogany's lease. However, the City holds a security interest in furniture, fixtures, and equipment located at the restaurant as collateral for previous economic assistance. The letter requests that the landlord and Mahogany's not remove or impair this collateral without the City's permission. It also states that while the City will help with the lease termination, it does not plan to provide further financing for similar restaurant ventures due to the inherent risks of that industry.

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    Letter to NIC

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    The City Manager sent a letter to the landlord and Mahogany's restaurant notifying them that the City would not take action to prevent the termination of Mahogany's lease. However, the City holds a security interest in furniture, fixtures, and equipment located at the restaurant as collateral for previous economic assistance. The letter requests that the landlord and Mahogany's not remove or impair this collateral without the City's permission. It also states that while the City will help with the lease termination, it does not plan to provide further financing for similar restaurant ventures due to the inherent risks of that industry.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    11K views2 pages

    Letter To NIC

    Uploaded by

    Justin Duke
    The City Manager sent a letter to the landlord and Mahogany's restaurant notifying them that the City would not take action to prevent the termination of Mahogany's lease. However, the City holds a security interest in furniture, fixtures, and equipment located at the restaurant as collateral for previous economic assistance. The letter requests that the landlord and Mahogany's not remove or impair this collateral without the City's permission. It also states that while the City will help with the lease termination, it does not plan to provide further financing for similar restaurant ventures due to the inherent risks of that industry.

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    © All Rights Reserved
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    CINCINNATI
    OFFICE OF THE
    CITY MANAGER
    Harry Black, City Manager
    September 11,2014
    Via Personal Delivery and Email
    Ms. Tracy Schwegmann
    Jeffley R. Anderson Real Estate, Inc.
    Rookwood Tower
    3805 Edwards Road, Suite 700
    Cincinnati, OH 45209
    Re: Mahoganys at The Banks Lease with NIC Riverbanks One. LLC (landlord)
    Dear Ms. Schwegmann:
    The City is in receipt of your letter dated September 2, 2014 to Mahoganys and the City of
    Cincinnati in which you notified Mahoganys and the City of the landlords election to terminate
    Mahoganys Lease at The Banks effective 10 days from the date of the Citys receipt of your letter
    (namely, Friday, September 12), subject, however, to the Citys right to take action under the
    Landlords Consent agreement among the landlord, Mahoganys and the City.
    Please be advised that the City has elected not to take any action under the Landlords Consent
    during the specified 10-day period.
    As referenced in the Landlords Consent and your letter, and as collateral security for the economic
    development assistance that was extended by the City to Mahoganys in 2012, the City presently
    holds a leasehold mortgage on the leased premises, as well as a security interest in all furniture,
    fixtures, equipment, inventory and other personal property that is located at the leased premises and
    used in connection with the restaurant (the Collateral), as more particularly described in the Citys
    fmancing documents.
    For the benefit of the City and the Citys taxpayers, the City respectfully requests that the landlord
    refrain from taking any action to remove, or to require the removal of, the Collateral, or any action
    that might impair the value of the Collateral, without first giving the City a reasonable opportunity
    to exercise its rights under the Citys financing documents to safeguard and ensure the proper
    disposition of the Collateral. Similarly, by copy of this letter to Mahoganys, the City is hereby
    notif~ing Mahoganys that it is prohibited from removing the Collateral from the restaurant, or
    taking any action that might impair the value of the Collateral, without prior written authorization
    from the City.
    801 Plum Street, Suite 152 Cincinnati, Ohio 45202-5706
    P513 352 3241 F 513 352 6284 www.cincinnati-oh.gov
    The City will continue its efforts to attract and retain small businesses in the City. Unfortunately,
    the Citys experience with Mahoganys illustrates the inherent risk in the restaurant industry. As
    such, while the City will work with the landlord and Mahoganys to wind down operations
    amicably, the City does not intend to extend further financing for similar enterprises. Kindly
    continue to keep the City informed of pertinent matters pertaining to the pending termination of
    Mahoganys Lease so that the City can respond accordingly.
    Thank you, and please contact Jeff McElravy (352-1561) with any questions should you wish to
    discuss this further.
    Sincere~y,
    Harry Black
    City Manager
    cc: Elizabeth Rogers
    Robert Croskery
    Jeff McElravy, Interim Director, Dept. of Trade and Development
    Terrance Nestor, Interim City Solicitor

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