Centre manager Rachael Dobson said her focus was now on supporting members to find alternative spaces for their groups and helping her 26 staff members find work.

"A number of their livelihoods is being impacted," she said.

"My focus is supporting them to find alternative employment and especially the vulnerable user groups to see if we can find alternative providers or locations for them."

READ MORE: Michael Mansell calls on Crown Lands Maps to withdraw published maps

State Sport and Recreation Minister Nic Street said he had discussed the situation with Ms Dobson and the City of Launceston council.

"There are several operational challenges, such as a decline in membership, that have prevented the organisation from providing a viable business case to maintain its existing operations into the future," he said.

"I am advised the council is proactively exploring tenancy options to support continued community access to the facility, including the basketball courts. The state government has encouraged options for YMCA to co-exist under a shared tenancy arrangement, which would enable them to operate viably, however unfortunately this was rejected by the YMCA."

READ MORE: Peak advocacy bodies have urged the federal government to invest in long-term dental funding for the elderly and regional areas

Launceston YMCA first issued a call for support in late April after Bass MHR Bridget Archer said she started working with the facility in March.

"The solution will not be found in government grants at this stage," she said.

"That may come down the track if [YMCA] are able to stay connected to that site."

Ms Archer said the fundamental barrier was the fact the YMCA has been running in a deficit for eight years.

"Governments can't fund organisations in that situation and I think it's very telling that this sort of thing has come out in the middle of a federal election," she said.

"With a new board and a new business plan, they're really asking government to take that on in good faith.

"My advice to them has been that they do try and find a way to [share the space] even if they scale back their existing operations. Because once they lose the connection to that facility, it's going to be very hard for them to come back.

"Had they come forward a couple of years ago, then there might have been an opportunity or enough time to help them head in the right direction and support them but it's all a bit late."

READ MORE: Increased pay for GPs will stem rural health crisis, Ochre Health head says

Ms Dobson said she didn't know why the funding ask wasn't brought forward earlier, as she started in the middle of 2021.

"It's somewhat surprising that it wasn't but people were doing what they thought they needed to do," she said.

Ms Dobson said it was "disheartening" that the new model caused a barrier in funding.

"There are a number of different mechanisms that can be put in place to safeguard and make sure that we were good stewards of that funding," she said.

"There are different reporting capabilities that need to be met that. If after six months or 12 months they weren't met and if we were not relevant to the community, then we shouldn't be in business but we believe we are. And we would like the opportunity to demonstrate that."

Bass Labor candidate Ross Hart said he and his state counterpart Michelle O'Byrne met with the YMCA a number of weeks ago and have explored different avenues to keep the services open.

"I discussed the matter recently with the centre manager and with her consent wrote to the state minister urging him to reconsider the denial of funding to the YMCA," he said.

"In my view, the state government and City of Launceston City need to recognise that for over 40 years public money and charitable donations have been supplied to improve the buildings on the site, notwithstanding that it is council land.

"It's not enough in my view for the council to point to the fact that the YMCA's has been able to sublease the premises to Coles supermarkets as the amount of rental received is barely sufficient to cover maintenance of the buildings."

Launceston mayor Albert van Zetten said the announcement was disappointing for the community who use the facilities, as well as those who work at the centre.

"There's no doubt that the YMCA has made a positive contribution to Launceston over many years; however the City of Launceston was simply not in a position to provide funding for such a significant shortfall," he said.

"There are many sporting groups and associations who operate within our municipality, and the reality is we cannot fund them all.

"The council provided support to the YMCA through a full rate and rent remission, which effectively meant they paid nothing to council for the property.

"They also benefitted financially through a commercial agreement to sublet the adjacent council-owned car park to a third-party - valued at $40,000 a year.

"In terms of the short-term use of the centre, the council will work with the local basketball association and any other groups to enable them to continue to use the indoor courts until a more permanent arrangement can be put in place."

READ MORE: Another death recorded as 1216 new active cases in Tasmania

Ms Dobson said the $35,000 YMCA Launceston receive from parking goes straight back into the maintenance of the facility.

"That's the repairs and maintenance budget each year," she said.

The impact of this closure will be on its members, Ms Dobson said. Groups such as stroke survivors who use the Fitness and Mobility Exercise Program and places like Optimal Community Support Services use the facility for their groups.

The pre-kinder group supports children aged three to five who have been diagnosed with ADHD or other behavioural issues, and need a smaller cohort.

"We've trying to find ways to integrate them back in into the larger services but a lot of the children come here after having tried the other service providers," Ms Dobson said.

Why not have your say? Write a letter to the editor here:

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: