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'COMPLEX' PROBLEM: YEREVAN'S HAMALIR BUILDING BECOMES DEFENSE MINISTRY PROPERTY
BUSINESS | 01.10.14 | 11:22
http://armenianow.com/economy/business/57257/armenia_hamalir_sport_concert_complex_defense_mini stry
GOHAR ABRAHAMYAN
ArmeniaNow reporter
One of Armenia's largest entertainment complexes that also represents
an original architectural structure was recently transferred to the
Defense Ministry and got the status of a military unit over the debts
contracted by its owner.
Enlarge Photo
Representative of the former owner of the Karen Demirchyan Sports and
Concert Complex (Hamalir) Sayat Grigoryan argues that the building was
"seized". Another controversial aspect of what happened is that the
name of the building was changed after its transfer to the Defense
Ministry.
"It is ridiculous, it's like turning La Scala into barracks,"
Grigorian commented to media on Tuesday. At the press conference he
wore a military uniform as a sign of protest.
The Service for the Mandatory Execution of Judicial Acts (SMEJA) of
Armenia's Ministry of Justice first put up Hamalir for action in May.
It said its owner, Bamo Company, had failed to repay its debts to
the state budget running into tens of millions of dollars.
The bidding price for the building constructed in 1983 and situated
on a total area of 46335.7 square meters (including other auxiliary
structures and territories) was first set at 19 billion, 350 million
drams (about $47.2 million), but it was repeatedly slashed after the
failures of offers to attract bidders.
The Hamalir administration challenged the process, in particular,
insisting that it was not legal to hold auctions while the case was
still at the stage of litigation. It also pointed out other violations
during the process.
At the latest auction the building was evaluated at $31 million. The
representative of Hamalir's already former owner insisted at Tuesday's
press conference that they had made several times more investments
than planned on top of the sum that was paid for the purchase of the
Complex and annual expenditure for its maintenance.
"We have a corresponding contract that entitles us to extend
the contract, taking into account the fact that we have made an
investment of $42 million instead of $10 million. We spent $1.2 million
annually on maintenance and still had plans for new investments. In
a law-abiding state they would not demand the repayment of the money
at once, but would allow the extension of the deadline and we would
have returned that money," said Grigoryan, giving assurances that
the Complex had always operated at a loss, because it was built not
as an income-generating facility, but as an "edifice for pride".
Government representatives, however, said that the company had actually
been given extensions for debt repayment, but could not properly use
those opportunities.
Grigoryan said they were also concerned that the state would not be
able to allocate enough money even for the annual maintenance of the
building and Hamalir would fall into decay again.
"It will again be in a neglected state. In 2005, when we purchased
that state-owned facility, it was in a terrible condition... We have
changed, reequipped everything, and today we have the most powerful
and expensive system here. We are fighting for our reputation, we
don't want our hard work to be lost," said Grigoryan.
The Hamalir administration has turned to court over what it views as
violations committed during the auction process. Grigoryan said that
after exhausting all judicial instances in Armenia they would also
turn to the European Court.
Grigoryan also voiced concern that the SMEJA documents have already
distorted the name of the complex, removing "Karen Demirchyan" from
it and calling it "real estate at the address of the sport complex
operating in Tsitsernakaberd Park".
The case is also alarming for members of the family of Karen
Demirchyan, the Armenian leader in the late Soviet period and leading
politician in post-independence Armenia who was assassinated during
the October 27, 1999 parliamentary shooting.
The son of Karen Demirchyan, Stepan Demirchyan, told ArmeniaNow that
apparently it was a case of misunderstanding, but in any case, he said,
they would turn to the Defense Ministry for explanations.
Meanwhile, the Defense Ministry spokesman did not comment on this
subject, saying that they would not react to "provocative" and
"ungrounded" speculations. At the same time, he gave assurances that
the name of Karen Demirchyan would be kept, while the status of a
military unit was only necessary as a basis for legal documentation.
Co-author of Hamalir's architectural design Hrach Poghosyan said he
could not imagine how the only edifice in Armenia that was awarded
with the State Prize of the Soviet Union should be used as a
"military unit".
"I think it is something of a formal thing, because the Defense
Ministry is divided into some sections and this section is called a
military unit. If it were the Ministry of Culture it would have been,
say, the monuments section," the architect said. "I think that the
Defense Ministry and the Prime Minister will prove wise enough and
will provide a right solution to the matter, as this structure should
work, it should not be closed."
BUSINESS | 01.10.14 | 11:22
http://armenianow.com/economy/business/57257/armenia_hamalir_sport_concert_complex_defense_mini stry
GOHAR ABRAHAMYAN
ArmeniaNow reporter
One of Armenia's largest entertainment complexes that also represents
an original architectural structure was recently transferred to the
Defense Ministry and got the status of a military unit over the debts
contracted by its owner.
Enlarge Photo
Representative of the former owner of the Karen Demirchyan Sports and
Concert Complex (Hamalir) Sayat Grigoryan argues that the building was
"seized". Another controversial aspect of what happened is that the
name of the building was changed after its transfer to the Defense
Ministry.
"It is ridiculous, it's like turning La Scala into barracks,"
Grigorian commented to media on Tuesday. At the press conference he
wore a military uniform as a sign of protest.
The Service for the Mandatory Execution of Judicial Acts (SMEJA) of
Armenia's Ministry of Justice first put up Hamalir for action in May.
It said its owner, Bamo Company, had failed to repay its debts to
the state budget running into tens of millions of dollars.
The bidding price for the building constructed in 1983 and situated
on a total area of 46335.7 square meters (including other auxiliary
structures and territories) was first set at 19 billion, 350 million
drams (about $47.2 million), but it was repeatedly slashed after the
failures of offers to attract bidders.
The Hamalir administration challenged the process, in particular,
insisting that it was not legal to hold auctions while the case was
still at the stage of litigation. It also pointed out other violations
during the process.
At the latest auction the building was evaluated at $31 million. The
representative of Hamalir's already former owner insisted at Tuesday's
press conference that they had made several times more investments
than planned on top of the sum that was paid for the purchase of the
Complex and annual expenditure for its maintenance.
"We have a corresponding contract that entitles us to extend
the contract, taking into account the fact that we have made an
investment of $42 million instead of $10 million. We spent $1.2 million
annually on maintenance and still had plans for new investments. In
a law-abiding state they would not demand the repayment of the money
at once, but would allow the extension of the deadline and we would
have returned that money," said Grigoryan, giving assurances that
the Complex had always operated at a loss, because it was built not
as an income-generating facility, but as an "edifice for pride".
Government representatives, however, said that the company had actually
been given extensions for debt repayment, but could not properly use
those opportunities.
Grigoryan said they were also concerned that the state would not be
able to allocate enough money even for the annual maintenance of the
building and Hamalir would fall into decay again.
"It will again be in a neglected state. In 2005, when we purchased
that state-owned facility, it was in a terrible condition... We have
changed, reequipped everything, and today we have the most powerful
and expensive system here. We are fighting for our reputation, we
don't want our hard work to be lost," said Grigoryan.
The Hamalir administration has turned to court over what it views as
violations committed during the auction process. Grigoryan said that
after exhausting all judicial instances in Armenia they would also
turn to the European Court.
Grigoryan also voiced concern that the SMEJA documents have already
distorted the name of the complex, removing "Karen Demirchyan" from
it and calling it "real estate at the address of the sport complex
operating in Tsitsernakaberd Park".
The case is also alarming for members of the family of Karen
Demirchyan, the Armenian leader in the late Soviet period and leading
politician in post-independence Armenia who was assassinated during
the October 27, 1999 parliamentary shooting.
The son of Karen Demirchyan, Stepan Demirchyan, told ArmeniaNow that
apparently it was a case of misunderstanding, but in any case, he said,
they would turn to the Defense Ministry for explanations.
Meanwhile, the Defense Ministry spokesman did not comment on this
subject, saying that they would not react to "provocative" and
"ungrounded" speculations. At the same time, he gave assurances that
the name of Karen Demirchyan would be kept, while the status of a
military unit was only necessary as a basis for legal documentation.
Co-author of Hamalir's architectural design Hrach Poghosyan said he
could not imagine how the only edifice in Armenia that was awarded
with the State Prize of the Soviet Union should be used as a
"military unit".
"I think it is something of a formal thing, because the Defense
Ministry is divided into some sections and this section is called a
military unit. If it were the Ministry of Culture it would have been,
say, the monuments section," the architect said. "I think that the
Defense Ministry and the Prime Minister will prove wise enough and
will provide a right solution to the matter, as this structure should
work, it should not be closed."