A Sterling nonprofit organization focused on downtown development is seeking to evict a business that it alleges is behind on rent, refuses to move out and is not using the building for the intended use agreed upon under the lease.

Sterling Today, represented by attorneys at Ward, Murray, Pace & Johnson, filed a complaint for eviction papers Dec. 31, 2025, in Whiteside County Circuit Court against the Mercantile Ballroom & Cocktail Lounge and business owners Ryan Nares and Ashley Nares.

According to court documents, the premises at 117-125 W. Third St., Sterling, is a 7,132-square-foot area of commercial space to be used as an event venue and lounge. The couple opened two connected businesses under one roof: The Mercantile restaurant and The Alchemy Ballroom event space.

In its filing, Sterling Today claims that the Nareses owe Sterling Today for months of rent, and that Sterling Today served the business Sept. 19 with a landlord’s 30-day notice to turn the real estate back over to Sterling Today.

According to court documents, the owners have not left the building. Sterling Today is seeking reimbursement for expenses it said should have been paid by the business, and to cover damage it said was caused by the defendants’ installation of security cameras.

“We were shocked and heartbroken to learn that Sterling Today filed an eviction case against us,” Ashley and Ryan Nares told Shaw Local on Friday. “We are a family business that sold our home and invested our savings to bring this space to life for our community. We dispute the allegations made in the filing and will address them through the proper legal process. We have acted in good faith, we have documentation, and we have tried to resolve this privately and responsibly.

“Our focus right now is protecting our clients and continuing to operate professionally. We want to be clear: We are operating, and we are honoring all contracted events. This has been financially and emotionally devastating for our family, but we are committed to handling it with integrity and reaching a fair resolution.”

A court hearing is set for 1 p.m. Jan. 27 at the courthouse in Sterling, according to court records.

The case background

According to court documents, the parties entered into a lease dated Feb. 28, which was followed up by an oral lease amendment in July – an agreement summarized in an email from Heather Sotelo, dated July 10.

Sterling Today alleges that the defendants immediately defaulted on the rent requirement by requesting an extension to pay the first installment of $6,500, which was a condition of rent forgiveness of $24,000. Sterling Today agreed to the terms.

The $6,500 was paid late on July 21, according to court documents.

Sterling Today alleges that after the defendants defaulted on the terms of both the written lease and amended lease terms, the defendants were sent a landlord’s 30-day notice to correct or vacate, which was served Sept. 19.

Sterling Today claims that while the defendants partially corrected some issues, they remain in default because they haven’t provided satisfactory documentation of the rent amounts paid for any month after August.

The defendants also failed to pay any rent for October, electing not to turn over whatever amounts they had planned to pay once they heard that Sterling Today planned to terminate the tenancy. Further, the defendants dropped off $30, purportedly for their rent owed from November, and the defendants neglected to maintain the stove hood and provide documentation of hood cleaning, as required in the lease.

According to court documents, the Nareses have posted on their social media pages that they do not intend to operate a restaurant anymore. Sterling Today alleges that the defendants have canceled at least their last two planned events, “thus reducing the amount of rent to be paid, but refusing to relinquish possession of the premises.”

Sterling Today is asking for:

• immediate possession of the premises.

• $1,924 for October rent, plus rent for the months of November, December and any subsequent months to be set at fair market value for a venue of this size, for all periods of time through the date defendants relinquish possession.

• $1,234.41 for expenses paid by Sterling Today. Those costs, according to court documents, cover work to remove snow and ice from the sidewalks, which the defendants neglected to do, as required by the lease. Sterling Today said it spent $525 for snow removal and $352 for salting the property in December. Sterling Today also claims that the defendants neglected to change over and pay the utilities on time as required, noting Sterling Today has paid $218.30 for the Illinois American Water bill and $139.11 for the city of Sterling sewer bill.

• $1,100 for damage caused to the premises by defendants’ unauthorized installation of security cameras.

• an order requiring defendants to leave all of Sterling Today’s personal property in the premises.

• attorney’s fees, court costs and other relief as the court deems equitable and just.

Founded in October 1992, Sterling Today Inc. is a 501(c)(3) nonprofit organization focused on the redevelopment of downtown Sterling. Since its inception, Sterling Today has invested more than $10 million through building rehabilitation, new construction, assistance with streetscape improvements, funding for Sterling Main Street’s ongoing Façade Grant program, and investment in other improvements in and around downtown Sterling, according to its website.

The website lists The Mercantile as its most recent undertaking, saying the project features the restoration of the historic 1877 three-story brick building located at 117 W. Third St. The project provides for a mixed-use establishment, with commercial tenants on the first floor and residential loft-style apartments on the upper two floors.

Sterling Today is led by an 11-member volunteer board of directors, according to the website.