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  • John O. Vartan: A visionary

    The Patriot-News, PA
    Dec 16 2004

    JOHN O. VARTAN 1945 - 2004
    A VISIONARY

    BY JACK SHERZER
    Of The Patriot-News

    John O. Vartan, an Armenian immigrant who built a business empire
    that propelled him to celebrity status in the Harrisburg area, died
    yesterday in Polyclinic Hospital.

    Vartan, 59, had battled throat cancer for 15 years.

    The Susquehanna Twp. entrepreneur made his mark through the thousands
    of square feet of office space he built, and for the even greater
    projects he envisioned.

    He was a poet and art collector who carried himself with big-city
    flair in a town where limousines are generally reserved for weddings.
    People knew it was Vartan when they saw his Rolls-Royce or Bentley
    drive by.

    And despite the cancer that left him gaunt and constantly needing to
    drink water to keep his mouth and throat moist, he remained an active
    part of the community until he was hospitalized about a month before
    his death.

    An engineer by training, Vartan had a willingness in the mid-1980s to
    take on the established power structure and build offices in the
    then-depressed city. Many credit his investment in Harrisburg as a
    key spark in the city's resurgence.

    Vartan was unafraid to speak his mind or sue when he felt wronged,
    and he racked up his share of adversaries. But he also had supporters
    who point to his successful projects and charitable works.

    In the early 1990s, he threatened to move to Princeton, N.J., when he
    became frustrated at opposition to his plans for a 17-story
    skyscraper capped by a revolving restaurant on Third Street.

    The midstate's movers and shakers entreated him to stay. More than
    100 of them affixed their names to a full-page ad in this newspaper
    pleading for him to change his mind.

    He stayed and kept dreaming big dreams, though many were never
    realized.

    Plans to transform 22 blocks of uptown Harrisburg into a village of
    affordable housing and neighborhood shops, dubbed "Vartan Village,"
    came to naught. The city ended up swapping land with Vartan, and
    another developer eventually turned a smaller section into the town
    homes today known as Capitol Heights.

    The additional 41 stories he said would top the Forum Place office
    building at Fifth and Walnut streets -- making it one of
    Pennsylvania's tallest buildings -- never happened. He sold the
    10-story building to the Dauphin County Authority for $78.7 million.
    Last year, he was brought back to manage the building by bondholders
    after the authority wasn't able to attract the needed state leases
    and defaulted on the bonds used for the purchase.

    "I think he'll be judged like all visionaries -- not everything that
    they envision happens," said David Black, president and CEO of the
    Harrisburg Regional Chamber. "But being able to get discussion going,
    being able to inspire the imagination of others, is not necessarily a
    bad thing, even though the project itself may not have happened."

    Vartan put "incredible investment back into the city," Black said.

    Gave back to community:

    Over the years, Vartan has been called Harrisburg's version of Donald
    Trump.

    He clearly enjoyed the limelight. He once bought a 27-foot section of
    stairs from the Eiffel Tower. He said it would one day grace the
    atrium of one of his buildings.

    In 1995, he tried driving his $75,000 military Humvee across the
    Susquehanna River when it was exceptionally low. Chortling that it
    was more fun than driving his Rolls, Vartan said he wanted to see if,
    in an emergency, he could reach areas of the drought-parched river
    too shallow for boats.

    But he was more than a builder with a knack for self-promotion.

    He zealously guarded his private life, and friends describe him as a
    devoted family man.

    And he was generous, many times privately and sometimes publicly
    giving to better the community and help those in need, including the
    American Cancer Society and the Harlem Boys Choir.

    "I think anyone who has been successful has an obligation to return
    to the community some of the good fortune," Vartan once said. "You
    need to make a profit so you can continue doing business and continue
    employing people and continue doing good things."

    He donated two homes and 35 acres in Susquehanna Twp. to create
    Widener University's Harrisburg campus law school; built the Central
    Allison Hill Community Center; contributed more than $3 million in
    gifts to Penn State Harrisburg; gave $200,000 in building supplies
    for South Carolina hurricane victims; gave $60,000 to help Armenian
    earthquake victims; and another $4.5 million to the Armenian
    Apostolic Church of America to create a charitable endowment.

    When the city's only private business club, the Tuesday Club, was on
    the edge of extinction, Vartan rescued an institution that was more
    than 40 years old. But with an eye to the practical, he retained the
    private aspect of the club for lunch only and morphed it with parev,
    a French restaurant.

    "John Vartan was a quintessential American success story," said
    Harrisburg Mayor Stephen R. Reed, who, like others, disagreed with
    the developer at times.

    "Through hard work, incredible sacrifice and dogged determination, he
    rose from humble and adverse beginnings to become one of central
    Pennsylvania's most admired and respected business and civic
    leaders," Reed said. "John was a close, personal friend and
    supporter, as well as a key partner in fostering Harrisburg's
    renaissance."

    Challenged Harristown:

    Vartan was born Vartan Keosheyan in the country of Lebanon, where his
    Armenian parents had been moved by the French colonial government to
    escape Turkish oppression. He worked briefly as a steward for Middle
    East Airlines, then enrolled as an engineering student at American
    University in Beruit in 1966.

    He came to the United States in 1968 and enrolled in Michigan
    Technological University, where he received a civil engineering
    degree. Vartan moved to the Harrisburg area in 1970 for a sanitary
    engineering job with Gannett Fleming, and also earned a master's in
    engineering from Penn State Harrisburg.

    In 1975, he opened Vartan Associates, offering engineering services
    to municipalities. He also formed Gazelle Inc., a commercial
    construction firm, which later became Vartan Enterprises. Much of his
    early construction projects focused on Susquehanna Twp., along North
    Progress Avenue.

    But it was in the early 1980s that Vartan really made his mark, with
    his successful antitrust lawsuit against Harristown Development
    Corp., which at the time controlled what could be built in the city's
    downtown.

    Vartan opened the doors for private development. As part of the
    settlement, he received land along Fifth Street between Market and
    Walnut streets for $1. He later built the Forum Place on the
    property, as well as the state Public School Employee's Retirement
    System building, which he sold to the agency for $8.5 million.

    Attorney Joseph A. Klein, who represented Vartan against Harristown
    but later battled the developer over his proposals in Susquehanna
    Twp., agreed Vartan was one of the moving factors behind the city's
    resurgence.

    "Frankly, that was the beginning of private development, the
    renaissance of downtown development, which had been stymied for some
    time," Klein said of Vartan's lawsuit. "It was not an inexpensive
    venture to decide to take a legal challenge against [Harristown] and
    take them to court."

    Wouldn't back off:

    Vartan had a reputation for not backing off when he felt he was
    right, and he didn't hesitate to use the courts. Many times, as in
    the Harristown case, he won.

    In another case, he even changed the makeup of his own township's
    political structure.

    After being denied a zoning permit to build his concrete plant on
    Linglestown Road in Susquehanna Twp. (where his building supply
    warehouse is now located), Vartan sued the township in federal court
    for violating his rights.

    He won in May 2000, with a jury finding that four commissioners
    improperly acted against him. Not only was he able to force three of
    the still-serving commissioners to resign, he also secured a $4
    million verdict against the township, $3 million of which was picked
    up by its insurance carrier.

    The concrete plant battle also pitted Vartan against another
    developer, Francis McNaughton, head of McNaughton Co., who was
    concerned over the plant's impact on his nearby housing development.

    Although McNaughton wasn't part of his lawsuit, Vartan at the time
    accused McNaughton of pulling political strings against him, which
    McNaughton always denied. In 2002, Vartan also backed a candidate to
    run for the state House against McNaughton's son, Mark, who retained
    his seat after an expensive campaign. More recently, Vartan and
    McNaughton patched things up.

    "Each of us were very tenacious in defense of a stated position, and
    sometimes it was very difficult to have either of us alter our points
    of view," said McNaughton, himself a self-made man who went from
    being a certified public accountant to presiding over one of the
    area's largest home builders.

    "I think he was a man of his time, I think he was absolutely a major
    force in the rejuvenation of downtown Harrisburg," McNaughton said.
    "John went in there when others wouldn't and made large investments
    that contributed to the success of downtown Harrisburg, and I think
    that's a legacy that he alone enjoys."

    McNaughton also cautioned against making too much of those projects
    Vartan talked of building but didn't.

    "I wish I could tell you how many times we attempted to develop
    something and it makes it to the charts and drawings but is never
    consummated," he said. "I do believe [Vartan] was a visionary for
    this area and I think he's done a lot of wonderful things for this
    area."

    Unrealized dream:

    Perhaps Vartan's largest unrealized goal was his dream of creating
    his own community. After Vartan Village fell apart, in 2001 and on
    the heels of winning his federal lawsuit against Susquehanna Twp., he
    approached the township with a project called "Vartown."

    The plan called for up to 1,000 residential units mixed with stores
    and office space on 95 acres off Linglestown Road and Progress
    Avenue. Many area residents balked at the congestion they feared it
    would bring, and the township ultimately ruled against granting
    Vartan a zoning change he needed to proceed. Today, it remains an
    open field bearing a Vartan property sign.

    "[Vartown] was really going to be the crown jewel of what John's
    legacy was really going to be all about, he really believed in this
    idea of mixed use and the idea that you could live, work and play all
    in one area," said Bruce Warshawsky, the attorney hired by the
    township to oversee the hearings over Vartan's attempt to change the
    zoning.

    He later became Vartan's friend, and the developer backed
    Warshawsky's unsuccessful 2002 run against state Rep. Mark
    McNaughton.

    Warshawsky said many of Vartan's detractors were envious and
    unwilling to accept an outsider, particularly one they viewed as a
    foreigner.

    "He was not willing to compromise his principles" when he felt in the
    right, Warshawsky said. "He wasn't afraid to use the leverage and
    power he had, especially once he became the icon he was."

    'Loved the community':

    There was another dimension to the man, though -- the family side
    that Vartan separated from his public business persona, Warshawsky
    said. Especially after surviving his first brush with throat cancer,
    Vartan made spending time with his family a priority.

    "John Vartan was really an outstanding family man," Warshawsky said,
    adding the developer often worked from an office at home to be closer
    to his wife and children. "The one thing I think he learned from his
    close brush with death 15 years ago was that you can't get back that
    time with your kids, watching them grow up."

    Vartan is survived by his wife, Maral; four children, Taleen, Hovig,
    Vahe and Armen; two sisters, Madeleine Keosheyan and Baydzar O.
    Keosheyan; and three brothers, Movses Sarkuni, Tigran J. Sarkuni and
    Sarko O. Sarkuni.

    "His own personal tastes were minimal, but he understood what power
    can bring and what the illusion of power can do," said Graham
    Hetrick, Dauphin County's coroner and a friend of Vartan for many
    years.

    Hetrick said he called Vartan in the early 1980s after reading a
    newspaper story detailing how he came to the United States and his
    love for this country. "I wanted to meet this guy who was an
    immigrant and loved America so much, and we became fast friends,"
    Hetrick said.

    When Vartan again showed his dreamer side and tried to create his own
    newspaper in the early 1980s -- The Pennsylvania Beacon -- to
    showcase only good news, Hetrick wrote a column.

    Hetrick attributed much of Vartan's drive to make good and have his
    name in the public eye to the upheavals his family endured: "He
    constantly talked about this, he watched his father accumulate money
    and lose it and be thrown out of one country or another and that
    really left a long-term, enduring impression on John Vartan."

    And Vartan was determined. Hetrick laughed, recalling how the two
    played racquetball before Vartan's cancer and how one time, a game
    kept going because neither would give up. It was that same
    determination that kept him going in the last 15 years of his life,
    despite the pain and discomfort of the cancer, Hetrick said.

    "I truly believe he loved the community, I think he liked the people
    and he liked being a big fish in a little pond," Hetrick said. "He
    was a visionary and sometimes his vision was bigger than the
    community's acceptance."
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