Mount Maunganui RSA president David Corin speaking at the EGM on March 30. Photo / Rosalie Liddle Crawford
Mount Maunganui RSA members have voted overwhelmingly to sell the club’s land and pursue a merger with Club Mount Maunganui, in a move aimed at securing the RSA’s long-term survival.
The decision was made at an Extraordinary General Meeting on Monday night, attended by 374 members.
It came as the club confronted mounting financial pressures and the deteriorating state of its Maunganui Rd premises.
The club has about 4000 members and is one of New Zealand’s largest RSAs.
The meeting followed earlier uncertainty about the club’s future, after a proposed merger with Tauranga RSA fell through this year, leaving Mount Maunganui RSA to consider its options independently.
Members were told the club was at a “crunch point”, with president David Corin warning it could not continue operating under its current model.
“The Mount RSA has been spending more than it earns – we are absolutely broke. We cannot trade when insolvent,” Corin said.
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.
Corin said the club also faced significant maintenance issues, including a leaking roof, outdated electrical systems, and structural problems, with parts of the building sinking.
“No one wants the RSA to close. We are not here to close the Mount RSA – we are here to save it,” he said.
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.
“We’re already making difficult short-term decisions just to cover essentials like staff wages, and the situation is worsening week by week,” he said.
Clarke said rising costs – including increases of 10-15% from suppliers – were compounding the problem, while revenue and membership engagement continued to decline.
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.
“Most development options would take two to three years – time we don’t have,” Clarke said.
Instead, he outlined two realistic pathways: merging with another club or selling the land to create an investment fund capable of generating ongoing income.
Following presentations and a question-and-answer session chaired by Graeme Elvin, members voted decisively in favour of both selling the club’s land and pursuing a merger.
In the first vote on the club’s financial pathway, 281 members supported a land sale, compared with 48 who favoured insolvency management.
In the second vote on future structure, 279 members backed merging with Club Mount Maunganui, while 73 voted against.
The outcome gave the club a clear mandate to pursue both options simultaneously.
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.
Clarke said the accommodation provided for veterans at Mount Maunganui RSA Village next to Mount RSA was under a separate trust, and would not be affected by the land sale.
Club Mount Maunganui president Dean Wearne, who attended the meeting with manager Fred Ferris, said the vote marked the beginning of a formal negotiation process between the two organisations.
“Mount RSA have made a decision to enter into negotiations to merge with Club Mount Maunganui,” Wearne said.
He noted Club Mount Maunganui had experience with previous mergers, including with the Cosmopolitan Club, Mount Bowls Club and Mount Croquet Club.
“Now we’ve got to work together as committees to put together information that goes to our Club Mount Maunganui members to decide whether a merger is appropriate for both clubs,” he said.
“I don’t see any reason why it wouldn’t be ... as clubs, we’re well-suited.”
The Mount Maunganui RSA executive will now begin progressing the land sale process, alongside detailed planning for a potential merger and transition.
Members were expected to receive further updates in the coming weeks, including timelines and opportunities for input as negotiations develop.
The decisions mark a significant turning point for the RSA, as it attempts to move away from a struggling hospitality model and re-establish a sustainable future focused on supporting veterans and the wider community.