Club Lambton boss Michael Gray met with Wallsend MP Sonia Hornery on Friday after it was revealed late last week that the state's Crown Lands department imposed an $83,000 rent hike on the local bowling club over the past 18 months.
Ms Hornery has made representations to the relevant Minister, but the situation remained unchanged on Saturday, Mr Gray told the Newcastle Herald at the weekend.
The local venue, formerly known as Lambton Bowling Club, which amalgamated with the much bigger and busier Club Charlestown in April 2021, may be forced to close if the rent continues to rise.
The state's Crown Lands department redetermines rental values for lease or license holders every three to five years, and the market value of the land determines the value.
Clubs on Crown Land are entitled to rent rebate concessions if they earn less than $1 million in revenue each year, but after Club Lambton's merger with Charlestown, the club fell out of eligibility for its rebate.
Mr Gray said Club Lambton's rent went from $12,000 to $55,000 about 12 months ago, and they were recently told it would be raised to $95,000 annually.
"We understand we have to pay rent, but we think the way they calculate rent isn't fair, and it doesn't help the club survive - this is a community bowlo," he told the Herald on Friday.
"That's the reality unless we can increase revenue to match the increase, but it's not only our lease payment we have to cover; it's insurance, electricity and other fixed costs that are also increasing.
"This increase is just too much, too quick. This is just an enormous jump."
At the weekend, Mr Gray said he had been in contact with Wallsend MP Sonia Hornery and was planning to launch a petition to garner community support as the club seeks to manage its rising rent prices.
But he expressed concern that a local club, such as the Lambton bowlo, was obliged to return whatever profits it made to the community and its members, casting a pall on rising rent costs.
"All the money that we make is not our money," he said, "It's money that goes back to the members through improved amenities or cheaper food and drink. That's the difference between us and a hotel; at a hotel, the profits go to the owner."
In light of that ethos, Mr Gray said sinking club funds into rising rents could force the closure of the Lambton club that has been serving customers since 1912.
"Realistically, the club isn't in a very strong financial position," he said on Friday. "We want to keep it open, but if we're losing money, we have to pull the pin."
A Department of Planning and Environment (DPE) spokesman told the Herald the merged entity had a much higher revenue base.
"The club can elect to object to the redetermined rent if it does not agree with the valuation," he said.
"Tenure holders experiencing financial stress may apply for financial hardship in the form of waivers, billing frequency changes, postponements of payments and instalment plans."
Mr Gray reiterated his position on Saturday that he believed Crown Lands' rental determination policy was flawed in that it relied on the value of the land as a primary determining factor.
"I think they need to review how they calculate rent and increase it by CPI rather than an enormous hike every few years," he said.
"Clubs have traditionally been a haven for older people; it's where they feel safe and comfortable. If you don't have the little clubs around the place for the community, you lose an opportunity for people to have somewhere to go to.
"We don't want to lose a community asset, but we can't continue to lose money."
