OGDEN — The abrupt July 4 announcement that Karen’s Cafe, a revered downtown restaurant, was closing for good — followed by an equally surprising reopening two weeks later — left customers wondering what happened and whether the food and service would stay the same.

RELATED: Ogden staple Karen’s Cafe back in business, reopens Monday on 25th Street

Karen Waters, the hospitable owner of the bustling diner at 195 25th Street, had apparently hit hard times due to health issues and deaths in her family. Earlier this month, Karen’s kitchen manager Ashley Ito said the restaurant had been up for sale for more than a year.

Court documents indicated ongoing financial struggles. On May 16, the Utah Tax Commission placed a $16,145 lien on Waters’ Time Square condominium due to five years of unpaid property taxes. Ogden City paid that debt in full the same day.

Mark Johnson, Ogden City’s chief administrative officer, said the city has a financial interest in all of the Time Square condominiums on the lower block of Historic 25th Street.

“We paid the back taxes to protect our first position on the property in case it happened to go into foreclosure,” Johnson said, noting that more than a decade ago, Ogden offered 25th Street loan programs in that area and currently holds a number of mortgages through Salt Lake City-based Transportation Alliance Bank (TAB). At that time, Waters purchased her entire condo and restaurant.

But Johnson acknowledged that this was the first such loan where taxes became a question and could have forced the city into a liquidation situation.

“I hope we don’t have any others,” Johnson said, voicing ongoing support for Waters. “We’re trying to work with her as much as we can. She’s had a lot of tragedy, and we’ll see how it all comes out in the next few months.”

Roy resident Neale Humes is now managing Karen’s Cafe. With a background in industrial construction, this represents a new adventure for Humes.

“We started negotiations in April, and I took over July 13,” Humes said. The main message he hopes to convey to the restaurant’s devotees is to expect more of the same savory food and friendly service.

“Nothing has changed but the manager. The cooks and all the recipes stayed,” Humes said. Most staff are back in their respective jobs, Humes added, although a couple of employees found other work after the cafe’s abrupt shutdown.

“There was some natural attrition when the restaurant closed down without notice . . . but we’re making adjustments,” Humes said.

The breakfast-lunch spot has also extended its hours to offer dinner to patrons. In an earlier story, Humes cited hours of operation as 7 a.m. to 8 p.m. Monday through Friday, 7 a.m. to 9 p.m. Saturday, and 8 a.m. to 2 p.m. Sunday. 

Several sources said that Waters had gone to Arizona to spend time with her daughter. Efforts to reach her were unsuccessful. 

Contact reporter Cathy McKitrick at 801-625-4214 or cmckitrick@standard.net. Follow her on Twitter at @catmck.