Stage two of the Around the Mountains Cycle Trail got a $1 million boost yesterday after it was announced it is getting a 2014 Lottery Significant Projects Fund grant.
Peter Dunne, Internal Affairs Minister and presiding member of the Lottery Grants Board, announced the recipients of $28 million in funding, allocated to ''significant community projects''.
The funding will help complete the second stage of the cycle trail, connecting Mossburn through Mavora Lakes to Walter Peak.
Southland District Council chief executive David Adamson said yesterday the grant would ''go a long way towards building the economic backbone'' of several small communities.
Local support for the project had been ''overwhelming'' and was gaining momentum, he said.
''The support for the cycle trail at community level has been amazing.
''Interest in the trail, both nationally and internationally, is generating enthusiasm among locals to develop complementary projects and businesses alongside the trail.''
Venture Southland community development team leader Bobbi Brown said she was delighted with the grant.
The organisation would continue to look for funding opportunities for the trail and the community projects ''springing up'' around Northern Southland which would make the trail ''a truly unique and special experience''.
Decisions on applications to the Lottery Significant Projects Fund are determined by an independent committee, with the application process administered by the Department of Internal Affairs.
Yesterday's announcement followed last week's government allocation of an additional $500,000 for stage one of the trail, from Kingston to Lumsden and Mossburn, which would be used to improve the flow of the trail through Athol township.
The first sod of the $11 million cycle trail, part of the New Zealand Cycle Trail Great Rides, was turned in July, and stage one is expected to be completed by May.
Stage two is due to be completed by the end of December 2015.
Other recipients of grants announced by Mr Dunne yesterday included $6 million to the Theatre Royal Charitable Foundation, to aid the reconstruction of the Isaac Theatre Royal in Christchurch, damaged by earthquakes, and $1.05 million granted to assist Christchurch as the principal venue for the 2015 Cricket World Cup.
The money will be put towards a roof for Hagley Oval Pavilion.
A $5.75 million grant was awarded to the Waitangi National Trust Board to support the development of a national museum at Waitangi and $1.67 million was awarded to Onuku Runanga Incorporated Society to complete the redevelopment of Onuku marae.