A showdown is looming at Dufferin County Council over the proposed sale of the county owned rail bed north of Orangeville to the Highland Rail Group.

After emerging from a closed portion of Monday's council session, Orangeville Council voted to challenge legally the contention of some county councillors that since the town has a "pecuniary interest" in the sale, its representatives should be excluded from participating in any negotiations and voting on the matter at county council.

Town solicitor Bill Stutz will be instructed to take the matter to court, if necessary, and to ask the County to suspend discussions and procedure on the rail matter until the court application has been heard.

A pecuniary interest is declared when a party — in this case a councillor or someone close to him or her — has a financial interest in an issue.

Mayor Rob Adams, who with Deputy Mayor Warren Maycock represents the town on County Council, says the issue "is a matter of the right of the taxpayers to be represented in the political process."

As town solicitor, Mr. Stutz presented council with a legal opinion Monday night that neither the mayor nor the deputy mayor has a pecuniary interest with respect to the rail bed sale and should therefore participate in discussions and voting on this issue.

The opinion conflicts with that of Stanley Makuch, who Mayor Adams says was retained by Warden Gord Montgomery to give his legal opinion on the issue.

Mr. Makuch's opinion is that the Orangeville representatives do have a pecuniary interest, insofar as he says the size of Orangeville's compensation from the sale of the former CP Rail branch line to Highland Rail hinges on the successful sale of the north rail bed.

It is an opinion that Mayor Adams sees as "ludicrous and against the political process," arguing that it could lead to councillors not being allowed to participate in issues that affect their municipalities merely because there would be a potential financial benefit to the municipality.

Contacted Tuesday, Warden Montgomery would not comment on whether the county had legal opinions on any of the rail corridor issues. (The Ontario Municipal Act allows councils to keep legal opinions confidential.)

Issues surrounding the potential sale of the rail corridor include its continued use by snowmobile clubs, Marg McCarthy, vice-president of the Drift Busters Snowmobile Club having recently reminded county council that the county is obligated to maintain recreational uses.

Ms. McCarthy's presentation more or less coincided with the NDACT (North Dufferin Agricultural and Community Trust) opposition to restoration of the rail line based on its belief that the rails would merely facilitate development of quarries on existing potato fields. (The Highland Companies have repeatedly indicated they want more shippers on the line to ensure its viability.)

At the county, CAO Linda Dean confirmed that a condition of title is, generally, that the county make a "reasonable effort" to maintain the corridor's recreational aspects. It also stipulates that the county should balance the needs of the community in its disposition of the corridor.

Ms. Dean could not comment on an assertion by former Amaranth mayor Bob Currie that the Orangeville councillors would be in a conflict of interest by voting on the sale. "I am not a lawyer," she said.

Had the issue ever been discussed? "Not in open session."

What about closed session? Ms. Dean said she was not in a position to comment either way.

The rail corridor is not on tonight's county council agenda, but councillors may add to the agenda under new business or may introduce a notice of motion for the next meeting.

At an all-day council meeting Tuesday as mayor of Mulmur, Warden Montgomery returned a phone call on the lunch hour.

On the issue of an appraisal of the corridor, he would say only that a cursory appraisal of its value would become public as soon as it went to the committee — a standard practice