Perth & Kinross Council is set to contribute £50,000 towards the development of business infrastructure at the former Cultybraggan Army Camp near Comrie.
The Comrie Development Trust, a company with charitable status owned by local people, bought the former army camp in 2006 and now plans to use the land for community development.
The aim of the project is to transform the 90 acres of land into a multi-functional community enterprise offering a model of sustainable development for rural Scotland.
It will consist of mixed-use development including community allotments, renewable energy production, low-cost homes, sports and recreation facilities, a heritage centre and also workspace and commercial development.
The Trust is seeking capital funding for the required services infrastructure (water, electricity, drainage) for the initial stage of the commercial workspace project. This will provide commercial units that will boost the local economy.
A paper will be presented to the March 25 meeting of the council's enterprise and Infrastructure committee, asking members to approve a request for £50,000 of funding from the Trust to be put towards the cost of business infrastructure.
Committee Vice Convener, Councillor Ann Gaunt, said: "This project has the potential to provide much-needed commercial space in an area which currently has limited development and expansion opportunities for business.
"These business units cannot go ahead without the provision of basic services infrastructure, and the Trust is now seeking funding from various bodies so that work can begin."
(GK/JM)
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