Announcement

Collapse
No announcement yet.

'Complex' Problem: Yerevan's Hamalir Building Becomes Defense Minist

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • 'Complex' Problem: Yerevan's Hamalir Building Becomes Defense Minist

    '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."

Working...
X