The provincial government is putting $1.5 million toward plans to turn the Elora Mill into a hotel, conference centre, restaurant and spa.

Pearle Hospitality, which has completed similar projects at mills in Cambridge and Ancaster, has been working on the Elora Mill for several years.

The money was announced Friday by Guelph MPP Liz Sandals. It comes out of the Southwestern Ontario Development Fund.

“Our government is always pleased to support companies like Pearle Hospitality, which are keen to grow and expand in Ontario,” Sandals said in a statement.

“The company has built a strong presence in tourism for many generations, and this new development will do much to boost the economy and provide good jobs to the people in Elora and Wellington County.”

In addition to the provincial funding, Pearle Hospitality is spending more than $13 million on the project.

The first phase of the renovation is expected to be complete by spring 2018, with work on the rest continuing for four years.