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A quiet bow: Ailing Vartan hands over duties to family

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  • A quiet bow: Ailing Vartan hands over duties to family

    The Patriot-News, Pennsylvania
    Nov 23 2004

    A QUIET BOW
    Ailing Vartan hands over duties to family

    BY TOM DOCHAT
    Of The Patriot-News

    John O. Vartan, a nearly penniless immigrant who used his
    entrepreneurial zeal to become one of Harrisburg's most influential
    businessmen, is ending his reign over multiple enterprises because of
    poor health.

    Although Vartan's oldest son, Hovig, and wife, Maral, are assuming
    chairman functions of Vartan's many businesses, they are not taking
    on his titles.

    Vartan, 59, has been a patient in Harrisburg Hospital for three weeks
    in his 15-year battle with throat cancer. He is "not responsive," his
    son said yesterday, explaining that his father can breathe on his own
    but is using a ventilator. "He's stable. He's comfortable," Hovig
    Vartan said.

    "We are not anticipating that Mr. Vartan will return to an active
    day-to-day role in the company," said Robert J. DeSousa, executive
    president, secretary and general counsel for The Vartan Group Inc.,
    the umbrella company for Vartan's businesses.

    Employees of Vartan's companies were informed of the situation
    yesterday afternoon in a memo. More than 200 people work in the
    Vartan ventures, which include a bank, a restaurant, a building
    materials company and a construction and real estate business.

    Employees have an "intense loyalty" to Vartan, DeSousa said.

    In the memo, the Vartan family said it hopes Vartan can "enjoy a few
    more years of peace in the presence of his loved ones." But, the
    family added, "Even if he should fully recover, it is unlikely that
    he will be able to throw himself into his work with the same passion
    and perspicuity for which he is famous. For him, to live means to
    work."

    Vartan has been a dominant presence on the Harrisburg scene since the
    late 1970s, when he began his embattled development of a series of
    office buildings off North Progress Avenue in Susquehanna Twp.

    He later set his sights on Harrisburg, first becoming embroiled in a
    legal fight with Harristown Development Corp. and Mayor Stephen R.
    Reed before beginning a cordial relationship with Reed that led to a
    series of Vartan buildings in the city. The latest of those sites is
    the state Department of Labor and Industry facility, 1521 N. Sixth
    St.

    "It's fair to say that, in our area, there were very few people over
    the last three decades that believed as strongly in Harrisburg as
    John Vartan did," DeSousa said.

    He has been a controversial figure.

    Jack S. Pincus, a former Susquehanna Twp. commissioner and director
    of Vartan's bank, conceded that Vartan has had his detractors. Some
    of them lived in the township that Vartan successfully sued a few
    years ago when he was denied a permit for a concrete-manufacturing
    facility at his Linglestown Road business.

    "Without a doubt, he had opposition to everything he did," Pincus
    said. "I always said that if he would build a Fort Knox in the
    township and give a $50 tax credit to every resident, they would
    still have 80 people coming in to express their opposition."

    Vartan's businesses include Vartan National Bank, Parev restaurant in
    downtown Harrisburg and the Vartan Supply Co. along Linglestown Road
    in Susquehanna Twp.

    The restaurant enabled The Tuesday Club to continue operations in a
    renovated facility along Pine Street in the city, DeSousa said.
    "Vartan stepped into the void and built a five-star, first-class
    facility" that opens at 5 p.m. for the public and is used by The
    Tuesday Club during the day.

    His vision for those businesses will continue to motivate them,
    DeSousa said. "There is no dramatic or substantial change in the
    structure of the companies," he said. "Every one of the company heads
    knows the vision that John had and knows the parameters within that
    vision."

    Vartan has contributed heavily to charitable organizations, something
    his wife and son will continue to oversee. He is also involved in the
    Armenian Apostolic Church's worldwide activities.

    Born and raised in a Lebanese refugee camp, Vartan came to the United
    States about 40 years ago to attend Michigan Tech, transferring from
    the American University of Beirut.

    After graduating with a degree in civil engineering, Vartan started
    work at Gannett-Fleming, a Harrisburg engineering firm. He earned a
    master's of engineering degree at Penn State University.

    Hovig said his father vowed to Gannett-Fleming that he would form his
    own business five years after he started working there. In 1975, he
    founded his first company.

    "He's our father, and we love him dearly," Hovig said yesterday.

    During Vartan's battle with throat cancer, he suffered with a dry
    mouth, causing him to always carry a bottle of water. His appetite
    suffered, and his speech was difficult to understand at times.

    "Of all the things he did, I think the way he handled his health
    problem was the most amazing," Pincus said. Calling Vartan "very
    ambitious," Pincus said, "He has a determination that most people
    can't compete with."
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