A recent update to members obtained by the Otago Daily Times also shows complications with the proposal to extend the buildings of its bowling club.
The RSA moved at its annual meeting in June to sell its main building, including clubrooms and restaurant, at 6 Church St and extend the existing building across the road at 3 Church St, on property used by the RSA bowling club, to accommodate the downsized club.
That move came after the club's precipitous financial decline from a $14,000 surplus to a deficit of more than $100,000 in the space of two years, blamed on a lack of patronage at its bar and restaurant.
All Mosgiel RSA operations, including that of its bowling club, have been put on hold until the RSA could scrape together enough money to continue.
Dunedin South MP Clare Curran said last month the RSA acted in bad faith by locking the doors on its bowling club and two bowling club members earlier described the treatment of the bowlers by the board as ''deplorable''.
A document sent to members on Friday said the ANZ bank had moved discussion on the RSA's finance requirements from the local bank to a national level of scrutiny.
''Today the bank has verbally communicated it is not prepared to provide the finance requested to meet commitments during our managed exit,'' the document said.
''Our very tight financial position has become tighter with strict control on all spending.''
Previous communications to members said the proposal for the development of the bowling club building at 3 Church St was for a 137sq m extension with walkway veranda, at an estimated cost of $520,000, plus GST.
However, a valuer had warned investment at 3 Church St risked over-capitalising the property, as the value was only in the land, and any structure on the land would detract from the value as it would need to be demolished.
Mosgiel Memorial RSA chairman Peter Amyes said yesterday the change from the local bank branch to a national level had no effect on board decisions.
Expanding the 3 Church St property would not be as simple as initially portrayed at the annual general meeting, he said.
''It's not as simple as was initially portrayed at the AGM by a group, and that's what we've been saying for a while and what we said at the time.''
Major Amyes also said a plan had been put in place at the end of June for regular monthly maintenance of the bowling green mat to continue, and access had been made available for the greenkeeper.
