Detroit, MI - Feb. 20, 2020 /PRNewswire/ -- The Detroit Regional Convention Facility Authority (DRCFA) announced that on February 3, 2020 it defeased $25,150,000 of its outstanding debt which will save the state's taxpayers $17,016,000 over the life of the bonds.
Since its inception in 2009, the DRCFA has saved Michigan taxpayers an estimated $108.6 million through effective management of financial resources. DRCFA is reporting strong financial progress for the world-class TCF Center in downtown Detroit with a focus toward becoming a self-sustaining facility by 2024. Images available at tcfcenterdetroit.com.
"With more than a decade of remarkable success for the DRCFA, we are driven to work with our partners for growth in tourism revenues, tax dollars and jobs for our region," said Larry Alexander, Chairman of the Board, DRCFA. "The interest in our city and TCF Center is unprecedented and positions us well on the national and international stage, projecting continuous growth and a valuable return to our state taxpayers."
Over the past four years, the Convention Facility Development Fund (CFDF) has generated excess funds that are dedicated to the early retirement of debt according to the terms of the DRCFA's enabling legislation. During this time, the DRCFA has used excess CFDF proceeds to retire $79,160,000 in outstanding bond principal, saving state's taxpayers $56,574,438 million. Combined with an estimated $30 million saved by the financing structure employed for the renovation of the TCF Center and $22 million saved from the defeasance of the 2003 bonds that were inherited from the City of Detroit, the DRCFA has saved state's taxpayers an estimated $108.6 million from strong financial management. This equates to 38.5 percent of the $282.3 million the DRCFA has received since its inception.
"We are extremely pleased with the progress being made toward paying down the bonds and the significant benefit it brings to the state taxpayers," said Patrick Bero, Chief Executive Officer and Chief Financial Officer, DRCFA. "Our goal has always been to save Michigan taxpayers money by paying off the bonds ahead of schedule and making the TCF Center financially viable. We continue to attract regional and international events to Detroit by providing a world-class venue with superior customer service for all of our guests."
The DRCFA completed a $279 million renovation and upgrade to TCF Center on time and within budget in August 2015. As a result of the renovation, TCF Center has become more accessible, spacious and efficient in its use of space. The world-class convention center now offers spectacular views of the Detroit River and Canada, multiple new entrances, increased parking, public art and improved traffic flow to enhance the visitor experience. Since the renovation, TCF Center has experienced a record number of bookings.
Located downtown on the beautiful Detroit Riverfront, TCF Center is one of the largest convention centers in the nation and hosts nearly 1.3 million visitors annually. TCF Center will host 209 events in 2020, including the North American International Auto Show in June.
About TCF Center
With 723,000 square feet of exhibit space, TCF Center, formerly Cobo Center, boasts one of the largest contiguous exhibit floor spaces in North America and is the 17th largest convention center in the country. Visit online at www.tcfcenterdetroit.com.
About the DRCFA
On 9/15/09, operational control of TCF Center transferred to the Detroit Regional Convention Facility Authority, under a collaborative agreement by the Michigan State Legislature, the City of Detroit, and Wayne, Oakland and Macomb counties. Each of these entities has an appointed member on the DRCFA Board. Larry Alexander is the appointee of the Governor of the State of Michigan and serves as Chairman of the Board. For more information visit: http://www.drcfa.org/.