This is the second time the 81-year-old Dunedin club had gone to members for loans, the first being when it built the Otaki St clubrooms 42 years ago, an arrangement which left the club mortgage-free.
The Otago Bridge Club and its 450 members have been at the Otaki St site since 1975, and the club has the lessee interest on the 0.26ha property in Andersons Bay.
However, with Chalmers Properties increasing the annual rent 23% from $24,000 to $29,708, club president Paul Hudson presented several options to members this week in a letter, which was obtained by the Otago Daily Times.
When contacted, Mr Hudson, a former city councillor, said with the club continuing to pay rent, and facing seven-yearly rent reviews, now was a good time to float the idea of buying the land.
''We've always believed in taking over the property to be in more control of the club's direction,'' he said.
For its trading year to the end of June 2016, Chalmers Properties' portfolio increased in value by $32million to $296million, of which about half is credited to Dunedin properties, largely around the upper harbour industrial area.
Mr Hudson said Chalmers and the club had both carried out valuations on the Otaki St site, and the ''bottom line'' agreed price was $651,000.
While Chalmers had upped the annual rental by $5700, Port Otago had ''generously'' agreed to annual sponsorship of $5000 until the next rent review in seven years, given the club was a not-for-profit organisation, Mr Hudson said.
He said with the low interest rate environment at present, with banks' offering around 3.5% interest, he hoped members would consider lending cash to the club instead, at 3.5%.
Mr Hudson said the club could put down $150,000 in cash reserves towards the purchase price, leaving a $501,000 balance required.
He said if the club's bank could do a 7% mortgage over 15 years, that would equate to $54,036 annually; which would be $810,540 for the term.
However, if the total $501,000 was borrowed from members at 3.5%, that would equate to $34,872 annually; which would be $523,080 for the term, ''which is very manageable'', he said in the newsletter.
He noted member loans would be unsecured and discussions would need to be held about loan terms and repayments and what would happen if the lender died.
Mr Hudson said the unsecured loan arrangement from members in 1975 had ''worked well''.
''We'd like to do the same again, but that's will be up to a majority of members to decide,'' he said, adding a special meeting would be called to canvass support for the options.
The Otago Bridge Club is affiliated with Otago Southland Regional Bridge Programme and runs four divisions, junior, intermediate, senior and open.
