Initiatives Prince George sold the former ACS call centre on Second Avenue for a profit of $415,00.
The city's economic development agency borrowed from the City of Prince George to purchase the building. In 2009 Initiatives Prince George signed a deal to sell the building to Terasen Gas, now called Fortis B.C., for a net revenue of $2.21 million, according to auditor Miranda Paterson.
Once the city was paid back $1.79 million, IPG was left with just over $1 million in capital reserves.
"The majority of that surplus is tied up in restricted funds," Paterson said.
A total of $327,747 was set aside for repairs to Initiatives Prince George's First Avenue building. An additional $100,000 was set aside to provide seed money for a performing arts centre downtown and $50,000 was used to develop a marketing prospectus for the city's downtown.
The agency also had just over $200,000 in operating reserves at the end of 2010, Paterson said.
"For an organization of this size it is fiscally prudent to have a [operating] surplus of $200,000 to allow for cash flow over the year," she said.
Initiatives Prince George president Tim McEwan said the sale of the former call centre was a "tremendous win" for the city and for the organization. Fortis B.C. plans to build a call centre in the facility, creating 100 unionized positions.
"We have paid off all our outstanding debt to the [city] and now we have a small, very small, capital fund to do our repairs," he said. "[And] what w'e're trying to do with the $100,000 [for the performing arts centre] is establish a legacy for downtown."
Initiatives Prince George chairman Glen Wonders said the sale allowed the organization to move into 2011 debt free and repair long-outstanding problems with the First Avenue location.
"The roof was leaking. The leak was so bad it was causing structural damage," Wonders said. "And it has an HVAC system that is older those most of the people here. It needed done."
Initiatives Prince George presented its audited 2010 financial statements to city council's committee of the whole on Monday night.
