INDIANAPOLIS -- Mayor Bart Peterson on Friday said he'll agree to let the state control the construction of a new Indianapolis Colts stadium and a convention center expansion, saying he wants to break a stalemate to move the projects forward.

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Control over the projects has been a sticking point since Gov. Mitch Daniels proposed a financing plan less than a month ago. Daniels wants to create a state building authority, and Peterson wanted the city's Capital Improvement Board to have control.

But Peterson told reporters Friday that with just seven days left in this year's legislative session, he felt he needed to concede the control issue so the projects could be approved.

"The governor's proposal to take control of the stadium construction was a bolt out of the blue," Peterson said in a news release. "It didn't make much sense to me then, and I still don't agree with it now.

"But this project -- and thousands of jobs and the $2.25 billion of economic benefit to Indianapolis -- is too important to Indianapolis to let the project remain at a standstill."

The proposed stadium and Indiana Convention Center expansion project needs authorization from the General Assembly. However, the tax increases that go with it would be need to be approved by the local governments involved.

Whether the City-County Council would agree to let the state control the projects was unclear. Last week, council President Steve Talley said the panel would reject a plan to raise taxes if Daniels insisted on state control.

On Friday, shortly after Peterson's announcement, City-County Council member Jackie Nytes told RTV6's Norman Cox that giving the state control would be a tough sell for the council.

The plan being considered by lawmakers would ask seven counties surrounding Marion County to pass a 1 percent restaurant tax. A portion of that revenue would go to the two projects.

The plan also would allow Marion County, which contains Indianapolis, to boost its food and beverage tax from 1 percent to 2 percent. It also could raise Marion County taxes on hotels and auto rentals.

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

Indianapolis leaders are seeking a new stadium and a convention center expansion, and they say the city risks losing both the Colts and valuable conventions if something isn't done this year.