The Ilitch family's Olympia Development of Michigan said Wednesday it will pay off and privately refinance the $200 million in public bonds that helped pay to build Little Caesars Arena.

The payoff comes 28 years ahead of schedule for the 30-year bonds issued by the Michigan Strategic Fund as part of the financing deal to build the arena.

By paying off the public bonds early and refinancing the debt privately, the move strengthens the balance sheet of the Detroit Downtown Development Authority, which in turn gives the DDA more financial leeway to back other downtown projects.

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The Ilitch organization, which had the burden of paying off the public bonds in annual payments, said its ability to refinance privately reflects market confidence in the future of the arena and the broader plans for The District Detroit, the name given to the complex of retail, residential and civic developments taking shape near the arena.

“Five years ago, our city was in bankruptcy, and catalytic investment was difficult to come by,” Glen W. Long Jr., CFO and interim president and CEO of the Detroit Economic Growth Corporation, said in a prepared statement. “With the payoff of the Series B bonds, in addition to having a vibrant Little Caesars Arena and thriving District Detroit, our city experiences a major win. Eliminating the bond debt gives the DDA an opportunity to drive even greater economic development in Detroit.”

Christopher Ilitch, president and CEO of Ilitch Holdings, Inc, said in a statement.“Detroit’s well-documented comeback is being recognized by third-party financial entities, which will drive even more investment in the city, region and state. For our organization, savings realized from the retirement and private refinancing of these bonds at a lower rate will contribute to our expanding vision for The District Detroit.”

Contact John Gallagher: 313-222-5173 or gallagher@freepress.com. Follow him on Twitter @jgallagherfreep.