INDIANAPOLIS -- A Senate panel advanced a plan Monday that would rely heavily on tax increases in Indianapolis and its seven adjacent counties to pay for a new Colts stadium and expanded convention center in the city.

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The plan, which was included in a bill with other major but unrelated proposals, put the cost of the combined project at $928 million. The new stadium with a retractable roof would cost an estimated $500 million and the expanded convention center about $275 million, with the remainder going toward such things as designs, land acquisition and site preparation.

The Senate Tax and Fiscal Policy Committee endorsed the plan 11-0, then voted 8-4 to advance the overall bill to the full Senate. It could be eligible for a vote later this week.

The stadium plan would create a new state financing board to oversee the project, and the state would own the stadium and then lease it to the Marion County Capital Improvement Board. Mayor Bart Peterson objected to that part of the plan, saying the current board was experienced in financing and overseeing major projects.

Peterson initially asked the General Assembly to authorize slot machines at an off-track betting parlor in Indianapolis and use the wagering tax revenue to pay for the project. But top lawmakers rejected that idea, saying they did not want a casino in the state's capital city.

The mayor said "tremendous progress" had been made in negotiating another deal.

"We are much further down the road than we were just a couple of days ago," Peterson said.

The current plan was drafted in large part by Gov. Mitch Daniels and Republican Sen. Luke Kenley of Noblesville, chairman of the Senate Tax Committee. Its funding would rely on Marion County doubling its 1 percent restaurant tax, and the seven counties next to Indianapolis adopting a 1 percent restaurant tax.

The increase in Indianapolis food and beverage taxes would raise an estimated $17 million for the project annually. The tax in adjacent counties would raise about $10 million, with the counties keeping half and the other half going to the project.

The plan also would raise Marion County taxes on hotels and auto rentals. People attending Colts games would pay a $3 ticket tax, and those attending other events at the new stadium would pay a $1 tax.

The Colts would contribute $100 million, and the bill includes various other funding sources.

The revenue increases would raise an estimated $53.5 million a year, which could be used to finance a bond over 30 years.

City, State Disagree Over Stadium Construction Control

Though they agree on the tax portion of the stadium-financing plan, the mayor and the governor are not on the same page when it comes to who will control the construction process, RTV6's Norman Cox reported.

Indianapolis Mayor Bart Peterson wants the process in the hands of the city-controlled Capital Improvement Board.

"If we want the project to succeed, we think it has a better chance of succeeding if we do it the way that every project has been done under every other administration in the past, and not throw that out and bring a bunch of people in who haven't done this before," Peterson said. "I don't know why the state would want to be in the stadium business."

State Budget Director Charles Schalliol explained the governor's position, saying the state is the one taking the financial risk on the stadium.

"We think the state needs a significant representation," Schalliol said.

Peterson said over the weekend that he supported the tax portion of Daniels' plan.