FINANCIAL woes have forced Mount Gambier’s iconic Returned and Services League to put its Sturt Street premises up for sale less than a month before the organisation’s centenary celebrations.
In a blow to the city’s war veterans, their families and the community, the oldest and largest RSL in the state could be forced to vacate its premises if a suitable buyer is not found – one that is prepared to lease the property back to the RSL for decades to come.
Marking a century on July 15, the RSL is one of Mount Gambier’s most recognised landmarks.
“With debt of around $2.5m we have no option but to take drastic action,” Mount Gambier RSL president Bob Sandow told The Border Watch yesterday.
“We haven’t made a profit for five consecutive years and are paying interest on our 2009 refurbishment debt to the tune of $80,000 per annum.
“In effect we have not touched the principle debt, but are just paying interest.
“In addition our electricity bill is set to rise by $25,000 next year.
“We thought about solar power, but must make a profit first before we can continue with anything.”
Mr Sandow said the decision to sell was on provision the RSL could rent the property for the next century.
“This would allow us to continue with business without relocating and ensuring the longevity of this iconic institution,” he said.
“We would be free from debt and in a position to look to the future.
“If we cannot find a suitable buyer, we will be forced to continue with our debt repayments in the short-term.”
Mr Sandow said offering the RSL building for sale was one of three motions passed at a committee meeting on Sunday.
The second was to run a debenture scheme (managed by a legal professional) whereby money can be donated to the organisation and later returned without interest.
In this regard substantial donations have already been received from a number of local businesses.
Thirdly the committee decided to continue negotiating with the Mount Gambier City Council to remove a land management agreement from the RSL car park in Ferrers Street.
This would free the RSL to sell the car park and adjacent land which is currently home to an armaments display.
“The value of the RSL premises is being assessed and once we have a figure we will call in the assistance of a local real estate agency,” Mr Sandow said.
“In the meantime all services are continuing as usual.”
RSLs across the state were in the news recently as a global economic downturn, rapidly ageing members and their non-profit status impacted negatively on their financial feasibility.
South Australian membership peaked at 47,000 in 1947, but has decreased to around 12,000 at present.
For Mount Gambier membership had dwindled to around 1800 from 2800 a few years ago.
“The problem is not only statewide, but national,” Mr Sandow said.
“The need for a traditional RSL is reducing as we move further away from the world wars and the conflicts in Vietnam and Korea.
“We need to reinvent ourselves without losing our very important Anzac values.
“If we don’t, we’ll find it very hard to continue doing business as community clubs.”
Mr Sandow said the Mount Gambier RSL is nevertheless forging ahead with the turnaround strategy it devised at the beginning of the year.
“We have already established a sport bar in the foyer, and is looking to lease the bistro to a suitable operator rather than manage it in-house,” he said.
“All our cards are on the table, hopefully we can count of community support to see us through these very challenging times.”
