More than $1 million in federal and provincial funding is being used to convert a Summerside building from a retail space to an office space.

The federal government, through the Atlantic Canada Opportunities Agency Innovative Communities Fund (ACOA), is contributing $990,000, with $28,000 coming from Innovation PEI for the architectural and design costs for the retrofit.

"I am thrilled for our city and residents to be bringing this major announcement of growth and prosperity," said Summerside Mayor Bill Martin in a news release.

"We couldn't be making this huge investment without the support from our federal and provincial partners, ACOA and Innovation PEI, which will result in quality jobs and the refurbishing of a core building in our city."

The space at 54 Central Street will be leased by the City of Summerside.

Innovation PEI is also offering building tenant IO Solutions a labour rebate of up to $810,359 for adding up to 100 positions to its business.