This phase involves building a 164-room Embassy Suites hotel, which will have rooms facing the football stadium.
The EZID will save the hotel developer $3.5 million in taxes over 10 years.
Officials from the Hyatt hotel set to be built in downtown Bloomington say they cannot promise they will abide by the city's minimum wage law.
Indianapolis has the eighth-highest taxes on travel amenities such as hotels, rental cars and food, according to the Global Business Travel Association.
As more contractors move into the Westgate Technology Park, hotel developers are seeing a need for their services.
Senator Richard Lugar says he will repay the taxpayer money he used to pay for hotel costs while he was in Indianapolis.
The Waldorf-Astoria Hotel in New York City is revamping its entrance to showcase the Indiana Limestone used in the building.