The Detroit Regional Convention Facility Authority has purchased U.S. Treasury securities that will be held in escrow to pay off $25.15 million in outstanding debt, saving $17 million in interest over the life of the bonds.

The authority purchased the U.S. Treasury securities with funds from the state's Convention Facility Development Fund.

"The amount paid for the securities today is far less than the accumulated interest that would be paid to service the existing bonds," said CEO and COO Patrick Bero, in an emailed statement.

Over the past four years, the authority has used excess funds to retire $79.16 million in outstanding bond principal, in accordance with the terms of its enabling legislation, it said in a release. That's saved the state's taxpayers nearly $56.6 million.

"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," Bero said in the release.

Through those and other financial management strategies, the authority said it has saved taxpayers a total of $108.6 million since its inception in 2009. It pointed to an estimated $30 million on the financing structure it employed for the $279 million renovation of the TCF Center and $22 million from the defeasance of 2003 bonds inherited from the City of Detroit.

The center is mandated by the Michigan Legislature to become financially sustainable and independent by 2024 when a $5 million annual state subsidy supporting TCF Center's operation ends.

Since completing renovations in 2015, the center has seen a record number of bookings, the authority said. It's set to host 209 events this year.

"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 authority and president and CEO of the Detroit Metro Convention & Visitors Bureau, in the release.

"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."

In July 2018, Chemical Bank agreed to pay the Detroit Regional Convention Facility Authority $1.5 million annually for 22 years for the naming rights to the riverfront convention hall.

But last year, Bero acknowledged the center's operating profit will also need to increase to sustain operations.

In a statement emailed to Crain's Thursday, Bero said he is projecting an estimated net profit of $597,787 for 2019 on convention center revenue of $13.9 million and parking revenue of $5.5 million.

That compares to a net profit of $371,000 last year on convention center revenue of $13.7 million and parking revenue of $4.8 million.