TOLEDO, Ohio — Five businesses - three restaurants, one that never materialized and a clothing store once located in the Uptown district - collectively owe the city of Toledo more than $210,000. And after repeated requests for comment, WTOL 11 has learned that at least one of these businesses is facing legal action as the city seeks to recoup this money owed.
WTOL 11 made a public records request with the City of Toledo’s Law Department. We received documentation showing all five in question were part of the city’s Enterprise Development Loan (EDL) program.
The EDL program is “intended to encourage private lenders to provide credit to firms that have difficulty securing reasonable financing that promotes growth while preserving working capital,” according to the City of Toledo’s website. The description goes on to read, “the EDL program is intended to directly serve the needs of disadvantaged business enterprises that quite often lack the resources to obtain credit through conventional means.”
Who owes money to the city?
According to the city of Toledo’s Law Department, the five businesses in collections are:
- Bonnie’s Toledo LLC (aka Bobcat Bonnie’s)
- Midwest Marys LLC (aka Hamburger Mary’s)
- Chosica Restaurant, LLC
- Ruby’s Kitchen, LLC
- Devoon
Bobcat Bonnie's
Of the five listed, Bobcat Bonnie’s is on the hook for the most. The city loaned the proposed restaurant, that never came to be, $100,000. And as of today, Bonnie’s Toledo LLC owes the city of Toledo $92,544.21 on that loan.
Bobcat Bonnie’s is a Detroit-based restaurant that announced it would open a Toledo location in 2021. It set an initial opening date for August 2021 in the refurbished Fort Industry Square building. That opening date would have preceded a myriad of planned downtown activities, including a concert by Gwen Stefani, and the much ballyhooed Solheim Cup Women’s Golf Tournament at the Inverness Club.
In February 2023, the owners told WTOL, “supply chain-related issues, inflation and interest rates slowed the process. They were looking to open in late fall or early winter and that the location would include a bar and arcade.”
There are a number of reports detailing how the restaurant chain, with numerous locations throughout Michigan, closed its Ypsilanti store weeks ago. WTOL 11 has made multiple attempts to get a comment from Bobcat Bonnie’s ownership. We are still waiting for a response.
Hamburger Mary's parent company
Midwest Marys LLC is next on the list. The company is best known for its connection to the Hamburger Mary’s franchise, which has locations all over the U.S., with the next closest being Milwaukee.
According to the document received from the City of Toledo’s Law Department, Midwest Mary’s LLC was initially loaned $45,000 as part of the city’s EDL program. At the time of this article, Midwest Mary’s LLC still owes $28,804.32 in unpaid principal.
Hamburger Mary’s originally set up shop in Toledo as part of the Docks along the riverfront, filling the end cap originally occupied by Navy Bistro. Then, in February of this year, the restaurant pulled up stakes and relocated to downtown Toledo on Huron Street. We’ve reached out to the owner for comment and are still waiting to hear back.
Chosica Peruvian Restaurant
Chosica Peruvian Restaurant, formerly on Bancroft near the UToledo campus, opened right before the pandemic in 2019. Upon the closing in 2023, the owners told WTOL 11 at the time that the pandemic put them in a big financial hole of which they could never crawl out.
As part of the city’s EDL program, according to the documents WTOL 11 obtained, Chosica was loaned $40,000. City records show the owners still owe $37,498.71.
Ruby's Kitchen
WTOL 11’s Caylee Kirby shared a story about Ruby’s Kitchen in February 2023. In it, she reported about how the west Toledo restaurant had been serving up the community southern-style food for two decades. Customers raved about the catfish, the peach cobbler, the sweet potato cheesecake, the chicken and dressing on Sundays.
Ruby’s, too, according to city records, was part of the Economic Development Loan program. According to the records from the city’s law department, Ruby’s Kitchen, LLC was loaned $50,000 and its unpaid principal balance is $40,038.75. Ruby’s closed in February of this year.
Devoon gift shop
Devoon gift shop in Uptown Toledo opened its doors in 2015, but the owner, Sandy Blackstone Carman, told WTOL 11 that she lost a lot of sales due to the pandemic.
She also told us she saw fewer customers when several blocks of Adams Street were shut down to allow for outdoor dining. Sandra Blackstone Carman dba Devoon is also listed as a participant in the city’s EDL program.
According to the chart obtained by WTOL 11, the city loaned Devoon $15,000. To this day, $12,936.54 remains as unpaid principal.
Can Toledo claw back the money?
The EDL program has rules. They’re laid out on the city’s website. However, nowhere on the site does it explain the penalties for defaulting on the loans. We asked for clarification on this matter and were told that "each of the listed businesses signed loan agreements with the City with re-payments and terms outlined in the loan agreements."
Applicants are instructed that “they must demonstrate their ability to increase employment opportunities for low and moderate-income residents in the city of Toledo.” There was no word from the city as to whether they track this type of thing after awarding said loans.
The law department spokesperson did tell WTOL 11 that the city has been in contact with Bobcat Bonnie's about next steps forward. As for the other four loan holders, they have been turned over to a collections agency "to determine the best course of action."
"For Bonnie’s, we have been in communication with the attorney representing the landlord of Bonnie’s Toledo to determine the best way to move forward concerning the restaurant equipment, located at the leased premises, the City holds a lien on," the spokesperson said. "The agreement for Bonnie’s Toledo, LLC has been turned over to the City’s Law Department to pursue action steps to recoup the money owed. We are aware of the reports that the restaurant franchise is experiencing financial hardships. We do not have any further comment at this time."
The city loaned out $250,000.00 to these five businesses, and as of today has only been able to recoup 15% of what it loaned. In other words, the city is out $211,822.53.
EDL success stories
The EDL program does have success stories, and the law department spokesperson further said, "The EDL program is one of the ways we use CDBG funding to spur community and economic growth."
WTOL 11 was provided with a list of businesses that participated and are currently in good standing. That list includes:
- The Blarney Irish Pub, LTD
- Fiber + Strand, LLC
- Grindhrs Co., LLC
- Summit Foods, LLC
- JAJ Development Company, LTD.
- Stone Family Enterprises, LLC
- Lockerlinked, LLC
- Hyggelight, LLC and
- Quenched & Tempered Brewery, LTD
