A proposal to fund a $150 million, 20,000-seat soccer stadium moved forward Thursday — but with some hefty strings attached.

Senate Appropriations Chairman Ryan Mishler amended the Indy Eleven proposal into Senate Bill 7, his legislation that would fund a proposed 25-year lease extension for the Indiana Pacers. The committee voted 11-2 to amend the bill and 13-0 to move it to the full Senate.

Under the amended proposal, the Indy Eleven would need to enter into a 25-year agreement with a Major League Soccer franchise and front 20 percent of the construction cost for a stadium before the team could use any taxpayer money. The legislation also includes multiple layers of approval from state and city governments before taxpayer dollars can be used.

Real news, brought to you by real Hoosiers. Support our local journalists.

Long shot:Indy Eleven stadium deal would require an MLS team. Why that's unlikely.

The legislation would allow the Indy Eleven to use up to $8 million per year for 25 years from a special taxing district around the team's proposed $550 million redevelopment. That's a change from the team's initial proposal, which would have raised up to $11 million a year for 32 years in property, income, sales and innkeepers' taxes, according to state fiscal analysts.

Mishler said later Thursday that he has reservations about the proposal, but it became clear the majority of his committee wanted to include a funding mechanism for the soccer stadium. While he could have blocked that as chairman, and in fact personally voted no, he decided to allow the committee to advance the measure — for now.

Mishler hasn't committed to keep funding for the soccer stadium in the bill as lawmakers continue to negotiate a final version through session's end in April.

"It's on the table," he said.

He said he decided to force the team to put skin in the game, because that's similar to a deal being negotiated between the city and the Pacers.

While the Indy Eleven have pledged to cover operating expenses and any debt-service shortfalls, Mishler is worried the state ultimately would be on the hook if something goes awry and the team can't pay.

"What happens if things don't work out (in building the development)?" he asked. "Are they going to come back to us? That's what's happened in the past."

City, state, and Eleven Park officials were reviewing the 19-page amendment Thursday following the meeting. But the initial reaction among proponents was relief that any proposal was moving forward.

Tim Phelps, a vice president of Hathaway Strategies and team majority owner Ersal Ozdemir’s spokesman on the stadium proposal, did not comment on the newly added terms in the bill. He did say, however, that he thinks the legislation is advancing because soccer fans have made their voices heard to lawmakers.

"This is only the latest step in a long legislative process," he said. "We will continue to work directly with legislators and all stakeholders so that we can fully capture this once-in-a-generation opportunity to secure the future of soccer in Indiana — with no new taxes and no appropriations from the state or city governments."

Indianapolis spokeswoman Taylor Schaffler said the legislation provides the starting point to discuss whether funding and building a soccer stadium is fiscally sound for taxpayers.

"While it would be premature to offer comment on the Indy Eleven's development plan," she said, "the financing proposed by the team fits squarely within Mayor (Joe) Hogsett’s preference for taxpayer-friendly funding mechanisms — especially given the team's public commitment to guarantee both the construction and operation of their proposed venue."

Ozdemir, who runs the development company Keystone Group, has proposed the $550 million redevelopment called Eleven Park, which would include $400 million in private investment in restaurants, shops, offices and apartments at a to-be-decided location, as well as the $150 million stadium and other public investments.

Ozdemir has said he's considering three locations in the city and sent a letter to Indianapolis Public Schools offering to purchase Broad Ripple High School.

The legislation would allow the Capital Improvement Board, which manages Bankers Life Fieldhouse, Lucas Oil Stadium, Victory Field and the Indiana Convention Center, to collect taxes from that development to fund a soccer stadium.

Ozdemir hopes to use a new stadium to lure a Major League Soccer team. Under the legislation, the CIB would manage the tax money, as it does for the Pacers and Colts.

Ozdemir has pledged that his six-year-old franchise would pay for any shortfalls if the development does not generate enough taxes to cover the cost of the stadium.

The Indy Eleven play their home matches at Lucas Oil Stadium. Ozdemir has been pushing for years for state help to build a stadium for the team, but lawmakers have balked at providing public subsidies. The Indy Eleven had an average attendance of 12,000 last season, according to the team.

If the state approves the funding mechanism, Ozdemir would begin lining up development projects and various approvals, pick a location and attempt to sign a Major League Soccer franchise.

Call IndyStar reporter Chris Sikich at 317-444-6036. Follow him on Twitter: @ChrisSikich.