The club previously tried to merge with Tauranga RSA but this fell through last year.
President David Corin said the club had subsequently faced a decision.
“It has been running at a loss for the last 10 years. It’s just got worse and worse – we had to pull the pin.
“We have to either be given a donation to pay our debt, or we have to sell our land and buildings.
“We’ve chosen to sell the land and buildings so that we can cover all those costs.”
Mount Maunganui RSA president David Corin speaking at a meeting in March. Photo / Rosalie Liddle Crawford
“As people get older, they don’t go out as much and don’t spend as much on food and beverages,” Corin said.
“The reason why we’ve closed the doors is because we’re not trading profitably.”
Corin said hospitality was the club’s only real income.
Maintenance and upkeep of the ageing building were also expensive.
“We’ve been donated money and thank those people sincerely, but the club can’t keep operating like it is.”
At a previous meeting in March, about 80% of members supported the land sale. About 85% supported the merger with Club Mount Maunganui.
The Mount Maunganui RSA site was valued at $13.5 million, with a fair value range of $12.75m to $14m.
Corin said the club was negotiating with multiple tenderers.
“Nothing has been confirmed yet.”
He said the expected sale amount was confidential until a tender had been accepted.
The money would go towards the proposed merger with Club Mount Maunganui, including buying land. It was proposed that the remaining proceeds be used for a newly established Mount Maunganui RSA Legacy Trust.
“We want to leave as much as we can for the future of the RSA locked up in a trust fund, and hopefully the returns will look after our people for decades to come.”
Club Mount Maunganui had previously merged with the Cosmopolitan Club, Mount Bowls Club and Mount Croquet Club.
The Mount Maunganui RSA clubrooms are on Maunganui Rd. Photo / Kelly O’Hara
Club Mount Maunganui had offered RSA members reciprocal rights while merger discussions progressed.
At last Sunday’s extraordinary general meeting, members also voted to increase Mount Maunganui RSA’s borrowing limit from the RSA Village Trust.
The trust provides subsidised accommodation for veterans and their families at the Mt Maunganui RSA Village, next to the club.
The borrowing limit would be raised from $100,000 to $350,000.
This would ensure the club could meet financial obligations during the land sale and merger process.
These obligations included paying outstanding creditors, wages and operational expenses, among other costs.
Corin said a strong majority of club members rejected a vote of no confidence in him and the executive committee.
He had been president for nine months and said he was doing his best to get the club out of its poor financial situation.
Corin said he was confident there would be a land sale.
“If anybody wants to purchase it, they will get one chance. It’s the last big site in Mount Maunganui that will probably ever come up.
“If you ever want to own it, now’s the time.”
Bijou Johnson is a multimedia journalist based in Bay of Plenty. A passionate writer and reader, she grew up in Tauranga and developed a love for journalism while exploring various disciplines at university. She holds a Bachelor of Arts in Classical Studies from Massey University.