More than half of the organisation’s recreation centres are located in regional areas but it was unable to negotiate a suitable outcome with the Raymond Terrace facility’s owners, Port Stephens Council. 

“As a result it is not financially viable for YMCA NSW to continue management of the gymnasium,” the organisation said in a media statement.

“Ceasing the management of YMCA Raymond Terrace has been a difficult decision for YMCA NSW to make.”

YMCA NSW has leased the Sturgeon Street facility for the past seven years from the council. Staff from council are among those who use it as part of their remuneration package.

But the council said it was unable to further reduce the rent.

"Council has supported the YMCA since the beginning,” the council's group manager of corporate services Carmel Foster said. 

“[Council] provided significant funding for the initial fit out, below-market rent when compared to similar sites in Raymond Terrace, as well as ongoing capital works, repairs and maintenance.

“It also agreed to a further rent reduction in recent negotiations with the YMCA.”

Ms Foster said it was a disappointing outcome.

"In the end, the decision to cease operating is the YMCA's to make,” she said.

“As owner of the building, council is working to find a replacement tenant to ensure those who use the facility are provided with continuity of service."

YMCA NSW notified its members of the decision via email on June 27. It’s services will cease July 22.

Across the state there are YMCA centres and services in Broken Hill, the Central Coast region, Taree and Batemans Bay. YMCA NSW also recently renewed management contracts in Bellingen and for the Broken Hill Regional Aquatic Centre.