INDIANAPOLIS -- Officials acknowledged Tuesday that a ticket tax -- which was part of Gov. Mitch Daniels' financing plan for a new Indianapolis Colts stadium -- is under discussion as city and Colts representatives try to reach a lease agreement by a Thursday deadline.

The acknowledgements came amid reports that the city caved in to Colts owner Jim Irsay's demand that the tax -- which would be $3 for Colts tickets -- not be imposed, RTV6's Norman Cox reported.

"(The tax) is certainly a discussion point that is moving forward. It's an issue that is being worked on," Deputy Mayor Melina Kennedy said.

Stadium authority Director John Klipsch also said the tax was "one of the topics of discussion" with the Colts.

"It's too early for us to draw a line in the sand about the ticket tax," Klipsch said.

The tax, which would be $1 for tickets to non-Colts events at the stadium, would raise about $2.5 million per year -- money that would be put toward the cost of the project.

Thursday is the last day the state can lock in a previously agreed low interest rate on bonds for the project. A lease must be signed before those bonds can be sold, Cox reported.

However, state Budget Director Charles Schalliol said Tuesday that because long-term interest rates are headed down, the state still could get a good deal later.

State Sen. Luke Kenley said he was upset about how the lease negotiations were going. He said the yearly $2.5 million provided by the ticket tax is critical -- not just from a funding aspect, but also for assuring that people going to Colts games contribute to the stadium cost.

"This is the one way that people going into that stadium will have an opportunity to contribute -- $3 at a Colts game, $1 at all other events -- toward the cost of the facility, and I think it's good public policy that we try to follow through on that," Kenley said.

A Colts representative refused to confirm or deny any aspect of the negotiations, Cox reported.