The Friends of the Earth community group will miss the deadline for funding from other sources despite already raising over £100,000 towards the project.
Sinn Féin MLA Oliver McMullan said it would be a "devastating blow" for the area.
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He said: "The Causeway Coast and Glens Council had agreed to support them, which would allow them to access match funding from other sources, but now unionists on the Council have initiated a call-in procedure on this decision.
"This will mean the group will miss the deadline for funding from other sources which could put the entire project in jeopardy. This is devastating for the entire local community and for the Friends of Glenariff group in particular who have worked so hard.
"I will be contacting the group to see what can be done to take this important project forward for the good of the local area."
(CD/JP)
