South Catlins Charitable Trust chairwoman Pamela Callahan said the trust would reapply for Lotteries Commision funding this week for the visitors education centre after being denied funding last December.
Without the funding, the centre, 12 years in the making this far, would have to be scaled back yet again.
Approved Community Trust of Southland funding was contingent upon receiving the Lotteries Commision funding which would create a ''domino effect'' and would force the trust to revise its plans, she said.
''We thought we would have it all built a lot sooner than this,'' Mrs Callahan said.
''We just hope we can get it and move on. It's really that that area can get a destination - a place where people can come and start their tour around the district.
''It's a gateway to Otago or Southland, whichever way you're going.''
She said the centre could also serve as a hub for tour operators, 100,000 people visit the petrified forest at Curio Bay each year.
The centre would have a 30- to 50-seat theatre and inform visitors about the area's natural history and wildlife, she said.
Venture Southland community development planner Juanita Thornton was preparing the application for funding from the Lottery World War One Commemorations, Environment and Heritage Committee, applications closed September 2.
She said when last year's application was rejected, it was made clear what was required for a successful application.
''It was just ... a few technicalities due to wording, we're just adjusting a couple of minor things in the application and we're going to resubmit it.''
She said she was not ''100% sure'' what the final amount requested was, but also said she preferred not to comment in detail on the funding request.
Construction at the site, which would include a wastewater treatment facility and new parking area, can only occur from March to September so as not to disturb nesting yellow-eyed penguins.
