Labelled by some as looking "like a factory in the middle of Boomerang Park", the structure will measure almost 1200 square metres in area and stand seven metres high, surrounded by a 2.1-metre tall fence.

Councillors voted 6-3, Cr Chris Doohan was absent, to approve the GWH Build tender of $663,000 for the design and construction of the shed, described by mayor Bruce MacKenzie as a "bargain price".

"It would be foolish of us to knock this back ... this is a Christmas present to the people of Raymond Terrace," he said.

An attempt by councillors Geoff Dingle, Peter Kafer and John Nell to defer the decision for more community consultation was quickly quashed.

Construction is expected to commence in four to six weeks.

Cr Nell, who had been overseas for the past two months, said he needed more time to assess the proposal. He questioned both the size of the shed and the need for a 2.1-metre high fence.

Cr Kafer said he was not against a Men's Shed in Raymond Terrace but was concerned that the sheer size of the building had created deep division in the community.

"I am not standing at the next council elections so for me this is not about votes.

"I believe by deferring tonight we can come up with a decent outcome for all," he said.

Cr Dingle's concerns were more far-reaching.

"This is a lot of money for an extremely large building which does not even include the fit-out ... [and] the proposal has been rushed through without much consultation."

Cr Dingle said he was also concerned about the source of the $663,000 from council coffers - being from land sales of 3 Tarrant Road, Salamander Bay, development.

He said "this is money that belongs to all ratepayers".

The Men's Shed committed $85,000 of its own funds to be used for work on the kitchen, office and loungeroom.

The kitchen would be installed with a $6500 federal government grant, announced by Paterson MP Bob Baldwin last Monday, before the matter went before councillors.