Naseby Summer Luge Trust spokesman Geoff Balme said the Otago Community Trust grant would allow the trust to now apply for other grants.
"It’s a very significant step for us, significant enough that things will now start to snowball," Mr Balme said.
It was hoped the rest of the funding for the project could be secured by the end of the year, and the luge installed by the end of the 2017-18 summer, Mr Balme said. The luge would probably not open then, but would be open for the following summer.
The stainless steel luge — valued at about $500,000 — used to be at Coronet Peak and was donated several years ago by Erna and Tonnie Spijkerbosch and David and Jenny Proctor, who have holiday homes in Naseby.
Mr Balme said a passionate, "very small, dedicated group of locals" was steering the project.
It was proposed that about 350m of the luge would be installed alongside the existing ice luge.
It would cost about $140,000 to install the luge but, as well as the Otago Community Trust grant, about $50,000 of labour, goods and services had already been committed by the Maniototo community, Mr Balme said.
The operating costs of the summer luge would be minimal, as it had wheeled carts and the luge needed no electricity.
The luge could also operate in winter, in which case some sharing of staff resources would be possible, Mr Balme said.
The luge was a "fantastic addition" to facilities in Naseby, he said. The summer and ice luges, curling rink and skating rink would be collectively marketed under the Naseby Adventure Park banner.
