(Danville, Va.) — Danville City Council has forgiven a $900,000 loan to make way for a new company and the promise of hundreds of new jobs.

The PRA Group, a debt collection service based out of Virginia Beach, wants to buy the former Telvista building in Danville.

To make that happen, the city had to forgive a loan to so that a lien on the property can be removed and it can be bought with a clear title.

City Manager Ken Larking said the loss of Telvista was unfortunate but said having the PRA Group as a corporate customer will bring more money and 500 new jobs to the region. He said “economic development is not for the faint of heart; businesses succeed and they fail sometimes.” Telvista left Danville last year when the company lost a major contract with Verizon.

Cherie Tamson said she understands council’s dilemma but hopes future deals can be structured to avoid losses to the taxpayer. She added that “the citizens are not happy that we’re facing a tax increase and a $1 million debt was forgiven.”

The sale is expected to be completed this month and PRA hopes to begin work within weeks. The company plans to invest around $15 million in the existing building.