It’s a bit of a long shot, but Peru is going to try for a new source of funding – one that raised more than $100 million for a city in southern Illinois.

Monday, the Peru City Council took the first steps to seek STAR Bonds.

It’s a matter of not missing the boat.

—  Jim Lukosus, alderman

STAR is an acronym that stands for “Sales Tax and Revenue” bonds. Cities and counties use them to fund major commercial, entertainment, and tourism projects. Instead of raising taxes, Peru could use future state and local sales tax revenues generated by a project to pay off the bonds.

A couple years ago, the city of Marion was awarded $112 million in STAR bonds to revitalize a stagnant shopping mall and create a large entertainment, shopping, and sports venue district.

“The state decided it was so successful they decided to try another venture,” Alderman Jim Lukosus said.

But the competition will be fierce. The state will allot STAR bonds to one lucky winner in each of several regions. Peru sits in a 10-county region encompassing northwest Illinois and the Quad Cities. Many suitor cities are expected to emerge.

“So the chances of getting it are probably slim,” Lukosus said. “We’ve got to get the paperwork in and at least try for it.

“It’s a matter of not missing the boat.”

Monday’s action included directing city staff to prepare a “request for interest/qualifications.” The city then will seek a master developer and/or request for proposals for STAR bond project.