''We're really thrilled, we can move forward now ... all the work we've done over the years has come to something. It will become the centre of Kawakawa, it'll join the whole town together,'' she said.
The Kawakawa Hundertwasser Park Centre, Te Hononga, will combine a library, Far North District Council service centre, gallery, art workshop, toilets and parking for cars and tourist buses.
It will be built of rammed earth on what is now a carpark behind the Kawakawa shops.
The project group had already raised more than 40 per cent of the money needed.
Mr Jones said as the gateway to the Bay of Islands and the Far North, Kawakawa had the potential to leverage off the cruise ship market and attractions such as the Twin Coast Cycle Trail.
However, improved infrastructure was essential to meet visitor needs and expectations.
Once built, the centre would connect visitors to local Maori cultural experiences and increase visitor numbers and spending in Kawakawa.
The project had strong iwi, business and community support, a key criteria of the fund, while a feasibility study forecast an increased visitor spend of $1.75m per year.
Mr Jones said the centre would be built and operational late this year.