The Dunedin City Council removed $22.4 million for the Dunedin Tunnel Trails project from its draft nine-year plan earlier this year.
Mayor Jules Radich said the cut was part of a $272m cost-saving exercise over the next nine years to reduce pressure on rates.
The new Dunedin Tunnels Trail Trust chairman Brent Irving said it was not giving up and looking at more options for funding moving past the initial stages of the project.
When Mr Irving joined the Tunnel Trails Trust about 10 years ago he did not think it would be that hard to build a 14km commuter trail from Gladstone Rd, in Mosgiel, to Caversham.
He said the project had experienced a lot of false starts for funding, including an $11m boost from the NZ Transport Agency Waka Kotahi (NZTA) that was pulled after the government changed.
"It’s been a real challenge to get momentum going.
"You get a road block like that and it doesn’t just hold you up or a week or a month, it can hold you up for six months to a year."
Mr Irving said the project had about $1.8m of council funds from the 2024-25 financial year left over, which would be used to progress the first stage of the build.
The council and the trust were working together to frame how that first stage would look.
However, the trust’s focus was on getting the trail opened and moving beyond the first stage.
To do that, the trust was looking at other options available to them for funding.
"I don’t give up.
"The trust aren’t going to stop progress because the council have ran out of money."
The options included government funding, private enterprise money or the trust doing its own fundraising.
He said the council would have less of a say in the project if it did not fund it past the first stage.
"My view is if the DCC aren’t putting up any further funding, then it might be that the trust is more involved than the DCC going forward."
Mr Irving said the project would be community-driven but would still require a "capital injection" from either the central government or businesses to continue moving forward without the council.
He said the trail should not cost anywhere close to $28.5m as it was once estimated.
The council and NZTA wanted a "Rolls Royce" version of the track, whereas the trust was after a well-constructed track that was safe and could handle bike and foot traffic.
Once it was opened, it could be upgraded with the bells and whistles at another stage.
For now, the trust’s primary objective was to engage with landowners and ensure it had legal access and easements in place with their consent.
