Derailed | Armidale councillors narrowly vote to delay rail trail | Video

Before the meeting began the councillors were confronted by a group of about 50 protesters, mainly from Trains North, calling for the rail trail to be shunted.

Demonstrators waved placards outside the Rusden Street chamber while Trains North president Matthew Tierney addressed the crowd.

"The railway line is a valuable community asset," Mr Tierney said.

"This proposal [to start construction of the trail head] has been sprung upon us, the trail from Armidale to Dumaresq is a pretend rail trail for which ratepayers will have to kick the tin for $1.8 million."

At the meeting, Mayor Sam Coupland was set to green light the start of the project with a $5.4 million federal government grant.

But Margaret O'Connor led a push for the trail to be shunted.

She successfully argued for a delay of the project, calling for another report on the costs involved in maintaining the trail, as well as clarifying whether the $5.4 million could be used for other community projects.

Effectively, the funding will have to be returned to the government as it was earmarked for the sole purpose of the rail trail.

"What's been put before us is rushed and a change in the scope of the project," Cr O'Connor said.

"We have a slew of essential capital works, we don't have the workforce to implement them nor the capital, so it's time for a bit of a deep breath on this project and more information."

Debra O'Brien agreed.

"The community has never actually been asked and a decision as huge as this, we should have some properly designed community survey to see how much community support we have," Cr O'Brien said.

"I think there are far more important priorities and I think we should be advocating for rail as hard as we can."

Seven speakers addressed councillors before the start of the meeting, both for and against.

Council heard how the rail trail proposal was first mooted in 2000, however, attempts to implement the trail galvanised over the past eight years, with case studies, government studies and the possibility of federal funding from the Black Summer Recovery Bushfire Grant.

In his report to Council, Daniel Boyce, chief officer of sustainable development, said the Great Northern Rail Line between Armidale and the Queensland border had not seen trains operating for 35 years.

"To revitalise this asset and generate economic growth, Armidale Regional and Glen Innes Severn councils propose a 103 kilometre rail trail between Armidale and Glen Innes," he said.

"Stage one and two of this trail is 68.8 kilometres ($21 million cost) between Armidale and Ben Lomond, which will provide a safe recreational location for cyclists and walkers.

"It is anticipated to attract 11,400 new overnight stays and 9000 new day visits to the region who will spend in excess of $5.9 million annually in local businesses."

Councillors were asked to support construction of 9.8 kilometres of the trail between Armidale and Dumaresq railway station, using the $5.9 million grant.

The trail head would have been completed by March next year. It would have included widening the rail corridor to about 3 metres, removing the sleepers, compacting the ground with bitumen or gravel and fencing off the trail to make it safe.

Cr Jonathan Galletly spoke in favour of the trail and against any more delays.

"This is just another reason why Armidale has stood in the quagmire for as long as it has, this slowing stuff down ... just take the bit and do something for this joint," he said to applause from a packed chamber.

Cr Paul Gaddes said any delay was "stepping away from the evidence presented. This project is shovel ready."

But Cr O'Connor's amendment to delay the project won the day with support from Crs Paul Packham, Dorothy Robinson, Brad Widders, Susan McMichael and Debra O'Brien.

Mayor Coupland, who supported his officer's recommendation to start construction of the rail trail, described the debate as "bruising".

Earlier in the day, he had been hopeful of seeing the trail head done and dusted by March next year.

While he did not speak at the meeting, he was clearly frustrated by the amendment.