"It's carrying out the elders' wishes. They wanted to ensure the retention of the culture and create a centre for all hapu in Whangarei," Mr Hetaraka said.
Trust secretary Janet Hetaraka said high on the wishlist for future development was a "big outdoor stage" for performances and other functions. A planned auditorium would cater to large audiences.
Developed over four stages, it would include working studios, galleries, a laboratory for studying native marine life, flora and fauna, climate-controlled facilities for storing feathers, other materials and taonga, an auditorium and an outdoor amphitheatre.
The centre would also be a meeting place for other indigenous people, building on last year's opening of the Pacific Indigenous and Local Knowledge Centre of Distinction at neighbouring He Puna Marama Trust. The trust would develop Hihiaua on behalf of all hapu and the community, Ms Hetaraka said.
"It's by Maori, for all."
It was a concept that fitted neatly with Foundation North's own vision for communities.
"The total Hihiaua Cultural Centre project is aspirational and tremendous in its vision" said the foundation's chief executive Jennifer Gill.
"It would simultaneously act as an anchor for the cultural background of the city, and a beacon which calls people to grow and experience Matauranga Maori in a contemporary setting."
Hihiaua chairman Richard Drake said the trust was delighted about the grant, and hoped the remaining amount would come in soon so building could start.
All the consents were in place and interested builders were waiting for the tendering process to start. Since the plans were formalised 20 months ago, building costs had gone up considerably, Mr Drake said.
There were other training and exhibition centres for traditional arts and craft in New Zealand but the Hihiaua Cultural Centre would be unique, he said.
"We've always wanted a gallery for authentic Maori art and cultural treasures and to include a performance venue.
"We have always, as part of our overall plan, had the objective of preserving, promoting and presenting all forms of Maori art, while creating a cross-cultural community facility."
Although the concept had been eclipsed in profile and fundraising terms by the Hundertwasser and Wairau Maori Art Centre (HWMAC), the Hihiaua team had been busy over the same period.
Mr Drake was earlier quoted as saying the two projects were separate and not in competition.
"A lot of people see they would complement, others see it differently. We've avoided that debate."
The Hihiaua trust withdrew an application for a Foundation North grant last year so as not to compete with the Hundertwasser project's push to get over the line.