The signing, to be held in the Southland District Council chambers, follows the unanimous resolution by councillors earlier this week to enter into the agreement with the ministry, which will be represented by New Zealand cycle trail programme manager John Dunn.
The Around the Mountains cycleway is one of the seven possible national cycleways announced by Prime Minister John Key a year ago.
The Government set aside $4 million from a national pot of $47.5 million for the first stage of Around the Mountains, from Walter Peak to Mossburn.
"Now it's been formally signed off by both, it's good," Venture Southland community development and events group manager Rex Capil said yesterday.
"Now the hard work starts.
"We need to initiate the consenting process, which can take up to three months. We were aiming for the trail opening early next calendar year. That's not achievable, but we're certainly aiming for it to be open for the tourist season of 2011, September-October type period.
"The opportunity exists to piggyback on Trenz in Queenstown [in May 2011] and show participants the beginning of the trail first hand."
The estimated cost of the four-day long, easy grade 175km cycle way had been trimmed from $11 million to about $9 million by looking at more cost-effective track and bridge construction, he said.
In his tabled report, Mr Capil said investigations to secure funding to complete the trail, from Mossburn to Garston to Kingston, would become a priority over the next 12 to 18 months.
"Preliminary discussions have been held with the Community Trust of Southland and the Lottery Grants Board and the opportunity exists for local service group engagement and project assistance."
Around the Mountains cycle trail report
• The Government has provided $4 million to pay for track construction and engineering costs for the first stage of the trail.
• An estimated Southland contribution of $60,000 is required for resource consent, surveying and easement costs.
• The projected operational budget for the Southland District Council to manage and maintain the trail shows a deficit of $42,000 in year one and a $35,000 deficit in year two, but a surplus from year three.
• The "conservative" projections are for 14,000 multi-day cyclists, 14,000 day cyclists and 1500 guided cyclists by year five.
• Accommodation is required at Mavora.
• Revenue to offset costs to be generated from a licensed commission operator's model. Commission could come from itinerary and accommodation bookings, bike hire, baggage and shuttle bus transfers.
