Should state funds be used to build a new Noah's Ark?

Should the state government of Kentucky commit taxpayer funds to the creation of a theme park modelled around the story of Noah's Ark?  Click on this link to read a Sarasota Herald Tribune story (12-6-10) that describes the controversy.  On the one hand, it is hoped that the park would create lots of jobs.  On the other hand, the for-profit group proposing to build it is allied to an overtly evangelical cause.  Does this violate the principle of the separation of church and state?