Detroit
Regional
Convention
Facility
Authority
(DRCFA)
Saving
State
Taxpayers
$74.7M
Encouraged
by Cobo
Center’s
Financial
Progress
DETROIT,
MI - The
Detroit
Regional
Convention
Facility
Authority
(DRCFA)
announced
today
that it
is
encouraged
by Cobo
Center’s
financial
progress
and
through
the
DRCFA’s
effective
management
of
financial
resources,
the
DRCFA is
saving
the
state’s
taxpayers
an
estimated
$74.7
million
since
its
inception
in 2009.
The City
of
Detroit
and
individual
municipalities
across
the
state
are also
benefitting
from
this
financial
structure,
saving
them
millions
of
dollars.
“The
Authority
takes
the
legislative
mandate
seriously
and has
implemented
strategies,
procedures
and
quality
standards
to
insure
growth
and
prosperity
of the
Center,”
said
Larry
Alexander,
Chairman
of the
Board,
DRCFA.
“Our
goal is
to
ensure
we have
a
convention
center
that
meets
the
demands
of our
customers,
provides
a sense
of pride
for our
residents,
and
ensures
a return
on the
investment
made by
the
taxpayers
of the
state
and our
bondholders.”
Over the
past two
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.
The
DRCFA
used
$32.45
million
in
excess
CFDF
proceeds
to
retire
$30,375,000
in
outstanding
bond
principal,
saving
state’s
taxpayers
$22.66
million.
Combined
with the
estimated
$30
million
saved by
the
financing
structure
employed
for the
capital
program
and the
$22.1
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
$74.7
million
just
from
financial
management.
This
financial
structure
is
saving
state
taxpayers
$22.66
million
and
individual
municipalities
across
the
state
are also
benefitting,
receiving
their
liquor
tax back
with an
additional
one
percent
interest
premium.
“We are
pleased
by the
progress
that is
being
made
toward
paying
down the
bonds
and the
tremendous
value it
is
bringing
to
taxpayers,”
said
Patrick
Bero,
Chief
Executive
Officer
and
Chief
Financial
Officer,
DRCFA.
“It is
important
for the
DRCFA to
continue
to
adequately
respond
to
market
demand.
Our
focus
continues
to be on
saving
taxpayers
money
and
providing
a
world-class
convention
center
for all
of our
visitors.”
Cobo
Center
had a
record-setting
year in
2017
with 497
event
days and
a 350
percent
increase
in
revenue
since
2009.
The
DRCFA
completed
a $279
million
renovation
and
upgrade
to Cobo
Center
on time
and
within
budget
in
August
2015. As
a result
of the
renovation,
Cobo
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
visitor
experience.
Since
the
renovation,
Cobo
Center
has
increased
the
amount
of
bookings.
The
DRCFA
estimates
an
additional
$30
million
in
capital
projects
towards
maintenance
and
facility
improvements
at Cobo
Center.
These
costs
will be
paid for
through
operating
funds.
Located
downtown
on the
beautiful
Detroit
Riverfront,
Cobo
Center
is one
of the
largest
convention
centers
in the
nation
and
hosts
nearly
1.4
million
visitors
annually.
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