The Mosgiel Memorial RSA Bowling Club, which operates a smaller property on the other side of Church St, may also find it difficult to continue to run long-term without a much bigger income.
In late April, the RSA announced it would close its Church St building's restaurant and bar because of higher operating costs and tougher trading conditions.
The club, which has about 1300 members, held the last of several membership feedback sessions on Wednesday night.
Key decisions linked to the building's future will be made at the club's annual meeting on June 22.
Mosgiel RSA board chairman Major Peter Amyes said the club's large collection of memorabilia would be safeguarded in one place, and not sold.
Asked about the $200,000 debt, arising from a $1.2million redevelopment completed four years ago, Maj Amyes said the debt had to be repaid and "if we haven't got any income to service a debt", assets would have to be sold, but this was entirely up to the members.
"That's the decision that the members need to make", he said.
Mosgiel-Taieri Community Board chairwoman Sarah Davie-Nitis said the community services provided through the building, for both RSA members and the wider community, were too important to lose.
She had been approached by about a dozen people, including some RSA members, who were "disappointed" by recent developments and keen for the services - including hosting dance groups, and housie - to be maintained at the building.
If necessary, the community board could help find an alternative venue to provide those key services, which included providing companionship and and falls prevention, she said.
It is understood that two tai chi classes organised by Age Concern Otago, previously held at the RSA on Tuesdays, have already switched to the Mosgiel Senior Citizens Hall, in Hartstonge Ave.
Two other Steady as You Go classes are to shift to the Mosgiel Presbyterian Church this month.
Age Concern falls prevention co-ordinator Margaret Dando said those who attended the four falls-prevention classes, about 80 people, were adjusting to the changes.
Maj Amyes agreed the services had provided a "massive" community benefit, and the RSA was trying to support continued non-RSA use of the facilities as far as possible.
