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Armenian Society speaks to financials
Society's spending questioned, but no evidence of wrongdoing found in
expenditures.
By Fred Ortega, News-Press and Leader
July 26, 2005
DOWNTOWN GLENDALE -- There has been growing concern in the community about
what the Armenian Society of Los Angeles plans to do with $5 million it got
from the city to build a new headquarters on South Louise Street.
Speculation has grown since the Glendale Redevelopment Agency rejected the
society's preliminary plans in late May for a 53,000-square-foot,
glass-and-steel structure including a theater and banquet facilities. Some
members of the Armenian community have asked whether the society has an
investment plan for the money pending city approval of the new headquarters,
and whether the money spent so far has been used adequately.
Despite the rejection, the society is still negotiating with the city to
come up with a viable plan and has actually increased the amount of money
available to it through investment, President Tomik Alexanian said.
The $5 million -- part of a land-swap deal between the society and the city
to help make way for the Americana at Brand project -- has grown by more
than $119,000 since the society received it in August 2003, Alexanian said.
"Based on our tax returns filed this year, we had $5,119,617 in our account
as of Feb. 28," he said. "We have spent about $110,000 of the money, but the
interest earned has been much larger. The CDs we had the money in have been
renewed and interest has gone up above 2%, so while we were receiving
$100,000 a year in interest, we will be receiving closer to $140,000 per
year in interest until we start construction."
Of the $110,000 spent so far, the society has spent about $80,000 for
preliminary engineering and architectural designs and the rest on air
conditioning design and environmental impact and land use studies, Alexanian
said.
"Our books are open and anyone can come and look at our statements," he
said.
Alexanian appeared on "The Larry Zarian Forum," which airs at 7 p.m.
Thursdays on Charter Communications Channel 26, spurred by inquiries Zarian
said he had received from his viewers about the society's funding.
"There are some people within the Armenian community and elsewhere who were
questioning the expenditures, what would happen to the $5 million and how
they were spending it," Zarian said.
The rejection by the Glendale Redevelopment Agency, made up of City Council
members, seems to have added to those concerns. Councilman Bob Yousefian
said at that meeting that the project was larger than what the society
needed, and that it would be unrealistic to expect that the group would be
able to complete construction even with the $5 million provided by the city.
"Knowing what they have proposed, and being a contractor myself, I don't
believe the organization will be able to borrow the money to complete such a
project," Yousefian said. "If the organization goes belly up, the $5 million
we gave them would be wasted."
Among those questioning how the society was spending the money is Albert
Abkarian, a local attorney and longtime honorary member of the society who
was recently made a permanent member after what he said was a 2 1/2 -year
delay.
"I am requesting a community committee to review the funding and how it is
spent," Abkarian said.
Abkarian received access to the society's records and found no evidence any
wrongdoing by the society's board of trustees, he said.
"But as far as whether checks were written for services that were
unreasonable in any way, I have no idea," Abkarian said. "I believe, along
with a lot of other people, that the society can build a center that suits
it better at a smaller scale and with a better design."
The society is still working with the city to come up with a design that
works for both sides, Alexanian said.
"We are making contact with city officials and hopefully we can meet
somewhere in the middle," he said. "Maybe we will reduce the size a bit,
make some adjustments."
In the meantime, the society is preparing to move to their temporary home at
320 Wilson Ave., which is also being paid for with $250,000 of city money.
Staff members should complete the move out of the society's old building,
located on South Brand Boulevard, within the next two to three weeks,
Alexanian said.
An election for the society's board is also scheduled for this Friday, he
said.
* FRED ORTEGA covers City Hall. He may be reached at (818) 637-3235 or by
e-mail at [email protected]
Society's spending questioned, but no evidence of wrongdoing found in
expenditures.
By Fred Ortega, News-Press and Leader
July 26, 2005
DOWNTOWN GLENDALE -- There has been growing concern in the community about
what the Armenian Society of Los Angeles plans to do with $5 million it got
from the city to build a new headquarters on South Louise Street.
Speculation has grown since the Glendale Redevelopment Agency rejected the
society's preliminary plans in late May for a 53,000-square-foot,
glass-and-steel structure including a theater and banquet facilities. Some
members of the Armenian community have asked whether the society has an
investment plan for the money pending city approval of the new headquarters,
and whether the money spent so far has been used adequately.
Despite the rejection, the society is still negotiating with the city to
come up with a viable plan and has actually increased the amount of money
available to it through investment, President Tomik Alexanian said.
The $5 million -- part of a land-swap deal between the society and the city
to help make way for the Americana at Brand project -- has grown by more
than $119,000 since the society received it in August 2003, Alexanian said.
"Based on our tax returns filed this year, we had $5,119,617 in our account
as of Feb. 28," he said. "We have spent about $110,000 of the money, but the
interest earned has been much larger. The CDs we had the money in have been
renewed and interest has gone up above 2%, so while we were receiving
$100,000 a year in interest, we will be receiving closer to $140,000 per
year in interest until we start construction."
Of the $110,000 spent so far, the society has spent about $80,000 for
preliminary engineering and architectural designs and the rest on air
conditioning design and environmental impact and land use studies, Alexanian
said.
"Our books are open and anyone can come and look at our statements," he
said.
Alexanian appeared on "The Larry Zarian Forum," which airs at 7 p.m.
Thursdays on Charter Communications Channel 26, spurred by inquiries Zarian
said he had received from his viewers about the society's funding.
"There are some people within the Armenian community and elsewhere who were
questioning the expenditures, what would happen to the $5 million and how
they were spending it," Zarian said.
The rejection by the Glendale Redevelopment Agency, made up of City Council
members, seems to have added to those concerns. Councilman Bob Yousefian
said at that meeting that the project was larger than what the society
needed, and that it would be unrealistic to expect that the group would be
able to complete construction even with the $5 million provided by the city.
"Knowing what they have proposed, and being a contractor myself, I don't
believe the organization will be able to borrow the money to complete such a
project," Yousefian said. "If the organization goes belly up, the $5 million
we gave them would be wasted."
Among those questioning how the society was spending the money is Albert
Abkarian, a local attorney and longtime honorary member of the society who
was recently made a permanent member after what he said was a 2 1/2 -year
delay.
"I am requesting a community committee to review the funding and how it is
spent," Abkarian said.
Abkarian received access to the society's records and found no evidence any
wrongdoing by the society's board of trustees, he said.
"But as far as whether checks were written for services that were
unreasonable in any way, I have no idea," Abkarian said. "I believe, along
with a lot of other people, that the society can build a center that suits
it better at a smaller scale and with a better design."
The society is still working with the city to come up with a design that
works for both sides, Alexanian said.
"We are making contact with city officials and hopefully we can meet
somewhere in the middle," he said. "Maybe we will reduce the size a bit,
make some adjustments."
In the meantime, the society is preparing to move to their temporary home at
320 Wilson Ave., which is also being paid for with $250,000 of city money.
Staff members should complete the move out of the society's old building,
located on South Brand Boulevard, within the next two to three weeks,
Alexanian said.
An election for the society's board is also scheduled for this Friday, he
said.
* FRED ORTEGA covers City Hall. He may be reached at (818) 637-3235 or by
e-mail at [email protected]