Mr Dunn was in Alexandra last week meeting representatives from 23 organisations to provide advice and help applicants looking for cycle-trail funding.
The meeting involved cycle and trail groups, local authorities and tourism groups from all over Otago and Southland.
The Government announced in May it would allocate $50 million for a national network of cycle trails.
In July, seven "quick start" projects were approved for funding or feasibility studies, including an investigation into a potential 175km Southland-Queenstown Lakes Around the Mountain Trail.
Mr Dunn said a further 35 proposals were being considered in the second phase of funding, including seven in Otago and Southland.
"Here, your proposals have a bit of a head start.
"That's because of the existence of the Otago Central Rail Trail and also because of the strong network of tracks currently built or being built in the area," he said.
"It's fair to say this group [of trail promoters] is more advanced in its planning than many other groups throughout the country."
Mr Dunn said the rail trail had set the benchmark for such projects and was the best advertisement for the benefits of cycle trails.
"That's our utopia.
"It's been fantastic and they've paved the way and are happy to share their knowledge with us."
The 35 potential trails all looked "sound" and all met the necessary attributes to be part of the national network, he said.
"Obviously, we can't overextend our funding, but they're aware of that and are seeking other sponsorship and grants as well."
The idea came from the Job Summit earlier this year and the aim of the network was to create employment.
Mr Dunn said he was impressed by how passionate the advocates for the trails were about their respective projects.
In the past fortnight, he has also chaired meetings in Christchurch, Wellington, Rotorua and Whangarei.
