\u2018Crunch point\u2019<\/p>\n
Members were told the club was at a \u201ccrunch point\u201d, with president David Corin warning it could not continue operating under its current model.<\/p>\n
\u201cThe Mount RSA has been spending more than it earns \u2013 we are absolutely broke. We cannot trade when insolvent,\u201d Corin said.<\/p>\n
The Mount Maunganui RSA clubrooms are on Maunganui Rd. Photo \/ Kelly O\u2019Hara<\/p>\n
He outlined a prolonged period of financial decline, including a $350,000 debt and ongoing monthly losses, which had been reduced from about $30,000 to $10,000 but remained unsustainable.<\/p>\n
Corin said the club also faced significant maintenance issues, including a leaking roof, outdated electrical systems, and structural problems, with parts of the building sinking.<\/p>\n
\u201cNo one wants the RSA to close. We are not here to close the Mount RSA \u2013 we are here to save it,\u201d he said.<\/p>\n
The Mount RSA EGM held on March 30 was attended by 374 members. Photo \/ Rosalie Liddle Crawford<\/p>\n
Limited options<\/p>\n
Acting general manager Jonathan Clarke reinforced the urgency of the situation, telling members the club had been losing money for more than a decade and was now approaching potential liquidation.<\/p>\n
\u201cWe\u2019re already making difficult short-term decisions just to cover essentials like staff wages, and the situation is worsening week by week,\u201d he said.<\/p>\n
The Mount Maunganui RSA property to be sold is outlined in red. The neighbouring medical centre and veterans’ village are not included in the sale.<\/p>\n
Clarke said rising costs \u2013 including increases of 10-15% from suppliers \u2013 were compounding the problem, while revenue and membership engagement continued to decline.<\/p>\n
He said development of the current site was no longer a viable short-term solution, particularly after a prospective developer withdrew shortly before the meeting.<\/p>\n
\u201cMost development options would take two to three years \u2013 time we don\u2019t have,\u201d Clarke said.<\/p>\n
Instead, he outlined two realistic pathways: merging with another club or selling the land to create an investment fund capable of generating ongoing income.<\/p>\n
Sale and merger support<\/p>\n
Following presentations and a question-and-answer session chaired by Graeme Elvin, members voted decisively in favour of both selling the club\u2019s land and pursuing a merger.<\/p>\n
Mount Maunganui RSA acting general manager Jonathan Clarke (left) and vice-president Judy Hallinan. Photo \/ Kelly O’Hara<\/p>\n
In the first vote on the club\u2019s financial pathway, 281 members supported a land sale, compared with 48 who favoured insolvency management.<\/p>\n
In the second vote on future structure, 279 members backed merging with Club Mount Maunganui, while 73 voted against.<\/p>\n
The outcome gave the club a clear mandate to pursue both options simultaneously.<\/p>\n
Clarke said proceeds from a land sale could be invested to generate an estimated $500,000 to $600,000 annually, helping restore member benefits and significantly increase funding for veteran welfare.<\/p>\n