The money will be used for major construction, however, the completion of the project will still be largely dependent on a number of local volunteers and businesses, one of whom - Glen Bullock of Bullocks - has already made an outstanding contribution.
Ms Brunger said there had also been donations of plants, a water fountain and shade sail, all to be installed as part of stage two.
"Further working bees will be organised in order for the community to support and contribute to the development of the park."
Stage three will include a junior bike track with traffic lights, stop and giveaway signs, giving children a safe and fun place to practice their cycling and road safety skills. The junior track is for children under 10 years of age who haven't had much experience on the road.
The Whanganui Mountain Bike Club have contracted an experienced track designer to complete plans for this part of the track with Bullocks and Loaders providing the GPS co-ordinates of the site.
"It is overwhelming to see how much the community is willing to give to make a project like this a reality," Ms Brunger said.