One of the South's oldest clubs will remain at its downtown Chattanooga location but with some improved member and guest services, according to its newly elected president.

The Mountain City Club, which was chartered in 1899 and has included many of Chattanooga's top business leaders through its 129-year history, has decided against selling its three-level clubhouse at Chestnut and Eighth Street downtown and its new leadership said last week the club has raised "significant funds" to help ensure its longevity.

People chat in the bar area Tuesday, August 18, 2015, at the Mountain City Club.

Mark Schmissrauter, managing director of Interpak LLC who was recently elected president of the Mountain City Club, said the club "has very strong equity" now and no longer is entertaining an offer from the Defoor Brothers and others to acquire the club's valued downtown block in the redeveloped "West Village" of downtown.

"When news of a possible sale emerged, a group of members came together to raise a substantial member pledge in just two weeks," Schmissrauter said. "I expect this number to grow."

The new club president said he is "surrounded by a very talented board" which he said will work "to improve member and guest services through things like menu changes and expanding the club's evening hours."

Membership in the downtown club had shrunk by more than half from its peak and former president Dan Saieed said this summer that the current membership of only about 300 may not be sufficient to fully maintain the 27,000-square-foot facility and all of its traditional services.

The club considered sell the existing clubhouse, which still includes some of the club's original chandeliers from earlier locations. Club members considered relocating the club elsewhere and using the proceeds of the sale to sustain and enhance the club, but the new investments mean the club is no longer looking at that option.

Although the club has preserved its historic past, it has also added a video conferencing center, smart boards and access to Chattanooga's ultra-fast, fiber optic internet for today's business meetings and work. The club added more than $500,000 in renovations to its second floor a few years ago, transforming the second level into a business center complete with free Wi-Fi and quiet work spaces, along with work to other parts of the facility to try to appeal to younger members.

Prior to those improvements, the club president Bob Franklin wondered if "there is still a market" for a club like the Mountain City Club. The club has dropped mos of its once exclusionary membership traditions and sought to attract younger and more diverse members.

The board room features new furniture Tuesday, August 18, 2015, at the Mountain City Club.

The club was first located in a Samuel Patton-designed building at the southeast corner of Seventh and Cherry streets before moving to a space in the old First National Bank building on Broad Street — currently the home of Pinnacle Bank. In 1904, the club moved into a second permanent clubhouse on Chestnut Street, where it would remain until its current location was constructed in the 1970s.

Through its history, the Mountain City Club has hosted countless icons and politicians, and members have included business and community leaders instrumental in charting the course of Chattanooga through its history.

"To be able to have these discussion opportunities, it is especially an advantage to our younger members," Schmissrauter said. "It is one of the few places in our city where the member can access the private parking area and just walk in. We extend that welcoming to business and civic organizations to reserve private rooms, where they can hold meetings and enjoy the atmosphere and dining."