The ASCS trust sought a $700,000 contribution from the council, but the council endorsed a recommendation from operations general manager Ruth Stokes to limit the council's cash contribution to $400,000, to come from the Arrowtown Endowment Fund.
That was in addition to the council's covering direct costs incurred from repositioning the rugby field at Jack Reid Park, tree removal and shifting ancillary services.
Trust chairman Murray Bennett told the Otago Daily Times after yesterday's meeting in Wanaka it was ''absolutely brilliant news''.
Mr Bennett said funding applications were ready to go, but could not be sent to respective agencies until the council had indicated its financial support for the project.
The trust - which will own, operate and manage the facility - has proposed indicative funding for the project of $2.05 million, including $100,000 already confirmed from the Arrowtown Rugby Club and $150,000 of in-kind community support, of which $65,000 has been confirmed.
Mr Bennett said in-kind funding included discounts of about $25,000 for roofing and cladding, $20,000 of donated schist stonework and about $11,500 on plumbing.
''Without that, we've got to cook a lot of sausages.''
The indicative funding included a $700,000 grant from the Central Lakes Trust.
At yesterday's meeting, Arrowtown councillor Lex Perkins said the town's Athenaeum Hall was often unavailable as it was routinely booked out by community groups, making the sports centre a much-needed facility.
ACSC Trust chairman Murray Bennett told the council during the public forum the aim was to start work on the centre at Jack Reid Park in April or May next year, to be completed by the end of 2014.
Cr Simon Stamers-Smith asked Mr Bennett how much it would affect the project if only $500,000 was provided by the council.
''It will tighten the belt ... but we don't wish to seem ungrateful by frowning at $500,000,'' Mr Bennett said.
A public meeting would probably be held towards the end of this month so members of the community could have a say on the 635sq m facility and suggest any design ''tweaks'' they would like.
