Filling in the gaps: Local developers talk with Sterling officials to bring eight duplexes to city

STERLING — Sterling could gain some much-needed additional housing in 2025 at no cost to the city.

The Sterling Industrial Development Commission met with city officials and Tyler Tarlton, Lou Pignatelli Sr. and Lou Pignatelli Jr. of Tarlton & Pignatelli LLC on Tuesday to discuss the company’s interest in developing eight duplexes on vacant properties across Sterling. Tarlton said the developments would be completely paid for using private funding.

Tarlton is a real-estate developer who moved to Rock Falls from Houston. He said he had been working with the Pignatellis to bring the project to the city of Rock Falls for about a year before deciding to move it to Sterling.

“There’s a tremendous need for housing here,” Pignatelli Sr. said. “This is a small, but significant, step toward the right direction. We’re ready to move quickly. It’s an opportunity where we can bring a lot of things together to make this a very attractive, comfortable development for families in Sterling.”

SIDC approved a motion to recommend the sale of vacant properties in the 200 block of West Seventh Street to T&P for $1. If all goes according to plan, Tarlton said construction on the first four duplexes would begin at this location in December, with an expected completion date of summer 2025.

SIDC tabled a motion to approve a recommendation to sell properties in the 900 block of First Avenue to T&P for redevelopment, as the city is currently in talks with another developer for those sites. The city is giving that developer time to gather information but will reassess the situation in early 2025, as the city cannot hold the property for one developer over another without a right of first refusal agreement.

However, that did not deter T&P from trying to secure a location for its second set of duplexes.

“We looked at something in the area of Lynn Boulevard and 16th Avenue that would suffice,” Tarlton said.

However, those properties were not on Tuesday’s agenda and will have to wait for a future meeting.

Tarlton and the Pignatellis are not looking to become long-term landlords from the project. Tenants will have the option to purchase or rent to own the pre-fabricated properties.

“That gives somebody the opportunity to still achieve the American dream,” Sterling Alderman Jim Wise said. “If you’re literally talking of having eight units up by this time next year, that’s quite a step in the right direction of providing workforce housing, which is greatly needed in this area.”

Sterling City Manager Scott Schumard agreed.

“We need housing on every level,” Schumard said. “They’re eager to get going right away. Part of this was done because we didn’t have anybody filling in those gaps and right now we have somebody interested in filling in the gap.”

The city has been looking for a way to deal with its aging housing stock, and Mayor Diana Merdian urged other developers to follow T&P’s lead.

“I encourage developers to view Sterling as an inviting destination for their projects encompassing commercial, retail, residential and other developments,” Merdian said. “I appreciate the efforts of the city staff in fostering growth and building strong relationships with external developers.”

All parties plan to meet again at 3:30 p.m. Tuesday, Dec. 3.