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Trdat Musheghyan

Yerevan’s Circular Park: Commercial Interests, Illegal Construction Deprive Citizens of Much Needed Green Space (Part 2)

Hetq continues to present the state of Yerevan’s Circular Park land, divided amongst former officials and their affiliates for years.

This is the second article on this topic, which covers the section between Teryan and Abovyan Streets.

The study of the lease agreements with the Municipality of Yerevan, as well as the cadastral history of the land, shows that the key renters of the second part of the park are the daughter of former RPA MP Samvel Aleksanyan, former RPA MP Arkadi Hambardzumyan's sister, owner of a company affiliated with former Republican MP Manvel Grigoryan, brother of former Prosperous Armenia MP Lyova Khachatryan, brother of senior prosecutor Karen Karapetyan and others.

All renters of the second part of the park pay 500 AMD monthly rent per square meter for cafés, 250 AMD monthly rent per pavilions, and 150 AMD  for improvement and landscape gardening monthly rent per square meter. 

Joint Business of Samvel Aleksanyan's Daughter and Lyova Khachatryan's Brother

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The largest area of the Circular Park’s second portion is occupied by Koffenet LLC. According to the contract signed between the Municipality and the company in 2016, the total area of ​​the land is 1552.07 square meters. There is an open-air café there.

Koffenet LLC was founded on December 16, 2015. Arsen Khachatryan, the brother of MP of the 3rd, 4th and 5th convocation Lyova Khachatryan, owns 66.6% of the company shares. The 16.4% stake is owned by Astghik Aleksanyan, the daughter of former Republican Party MP, businessman Samvel Aleksanyan. The other 17% is owned by Vahe Vardanyan.

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222,77 square meters of 1552.07 square meters of land were provided for cafés, 21.46 square meters for pavilion and 1307.84 square meters for improvement and landscape gardening. While the latter is much lower (150 AMD per square meter) than the rent for the café area (500 AMD per square meter), it is obvious that most of the space allocated to Koffenet LLC is actually occupied by the cafe, not the improvement and landscape gardening area, as stated in the contract.

Former MP Lyova Khachatryan told Hetq that the company was registered in the name of his brother, but the café belonged to their family.

“The café's business and profits are taxed based on its cash register. The size of its area has nothing to do with it. You can go ahead and check. That's what I was told. I pay as much as it’s due according to the contract with the municipality, which is several times more than many similar properties there,” said the former MP.

As for sharing Koffenet's stake with Samvel Aleksanyan's daughter, Lyova Khachatryan said: “I have nothing to do with the transfer of ownership of a part of the company to Samvel Aleksanyan. From the beginning, 1/3 of the company's stock didn’t belong to our family. I don’t know if the other shareholder has decided to transfer, sell or somehow pass it to Aleksanyan or anybody else.”

Asked whether he used his parliamentary mandate to rent space in a public park, the former MP replied: “As a politician, as far as I can remember, I only lost and gained nothing. I earned what I had until I was an MP.”

The company of affiliates of former MPs Samvel Aleksanyan and Lyova Khachatryan paid 3 million 755 thousand AMD for a total area of ​​1552.07 square meters. At the time of signing the lease, the cadastral value of the plot was 60,000 AMD per square meter.

The agreement between the Municipality and Koffenet LLC is valid till December 26, 2027.

Former MP Arkadi Hambardzumyan's Sister Among Biggest Tenants

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Armine Hovakimyan, the founder and director of the Slavmed Medical Center, is one of the major tenants in the park. She is the sister of Arkadi Hambardzumyan, MP of the 3rd, 4th, 5th and 6th convocations. The rented area of ​​Armine Hovakimyan is 1352,33 square meters, which is occupied by KFC fast food restaurant.

The land rented by Arkadi Hambardzumyan's sister was once occupied by Solon LLC, founded in 1995. In 2007, Armine Hovakimyan bought the company’s shares. Later on, she also bought the café. The contract was renamed with her name.

While we didn’t manage to reach Armine, her brother, Arkadi Hambardzumyan, contacted us. He repeatedly emphasized in his speech that everything was legal. Then, at his instruction, Artur Martirosyan, the director of the law firm serving the Derjava-S CJSC that belongs to Hovakimyan-Hambardzumyan family, contacted us.

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“Armine Hovakimyan has long subleased the premises to Fastfood CJSC, which is the franchisee of the KFC restaurant chain,” Arthur Martirosyan said.

Fastfood CJSC also belongs to the Hovakimyan-Hambardzumyan family.

In addition to the leased land, Armine Hovakimyan also leased a 67 square meter building with a total plot area of ​​78.44 square meters. Martirosyan says this building is used as a warehouse.

Martirosyan urged us not to mention Arkadi Hambardzumyan's name in the publication since the former MP was not engaged in any entrepreneurial activity. However, the former MP had repeatedly stated "I did" and "hired" him during the conversation. 

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"Arkadi Hambardzumyan talked as a member of the Hovakimyan-Hambardzumyan family, but during his tenure he did not rent or privatize any property, nor he ran any business. There is no reason to think he was the reason we were given space. Тhe head and creator of the entire Derjava-S is Stanislav Gurgen Hovakimyan, Mr. Hambardzumyan’s father,” said lawyer Artur Martirosyan.

Of 1352.33 square meters of land rented by Armine Hovakimyan, 971.26 square meters are formulated as improvement and landscape gardening area, and only 381.07 - as a café, although most of the land is actually occupied by the KFC. The annual rent of the plot is 4.034 million AMD. The contract expires on March 26, 2033.

As for the other contract, Armine Hovakimyan pays 1.556 million AMD annually for the 67 square meters building and 235,000 AMD annually for the 78.44 square meter plot. This agreement is valid until August 1, 2021.

Senior Prosecutor's Brother Owns a Café

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The sole owner of the Karara café in the second part of the park is Arman Karapetyan, brother of senior prosecutor Karen Frik Karapetyan. Prior to his appointment as the Prosecutor General, Karen Karapetyan was the Head of the Investigation Department of Corruption, Organized and Official Crimes of the Special Investigation Service.

Karara LLC has been operating in the second part of the Circular Park since 2002. The current contract of 1133.67 square meters of land between Yerevan Municipality and Karara LLC was signed on February 14, 2017. The contract is in force until December 31, 2030.

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Out of 1133.67 square meters of land, 345.96 square meters were provided for cafés, 178.52 square meters for public buildings, and the remaining 609.19 square meters - for covering, improvement and landscaping. In this case, it is also obvious that most of the land is actually occupied by the café, not the area of ​​improvement and landscaping. Annually, Karen Karapetyan's brother pays 3.707 million AMD for the land.

A Good win betting office is located in the area of ​​Karara.

Owner of the Company Linked to Manvel Grigoryan to be Ousted from Circular Park

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The central part of the park’s second part was leased to Manuk Petrchikyan from Etchmiadzin, the owner of Manch 045 LLC, before June 20, 2019. The company is affiliated with former MP Manvel Grigoryan.

According to March 13, 2017 Mayor of Yerevan decision, Petrchikyan rented 651.83 square meters (with an annual rent of 3.174 million AMD), on which there is now an abandoned illegal building. Formerly, it was café Golden Lotus. An LLC with the same name, founded by Aghabek Grigoryan, is registered in the Arshaluys community of Armavir marz, which is Manvel Grigoryan's birthplace.

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On May 4, 2014, Manuk Petrchikyan and Golden Lotus LLC signed a loan agreement, according to which Petrchikyan transferred 2.5 million drams to the company to conduct café trading. Under the agreement, the loan was to be repaid by November 4, 2014. However, the debtor failed to comply with the obligations assumed under the contract. In May 2016, Manuk Petrchikyan filed a lawsuit seeking bankruptcy of Golden Lotus LLC. On June 27, 2016, the Court of Kentron and Nork-Marash Administrative Districts upheld the plaintiff's request and declared Golden Lotus LLC bankrupt.

On June 20, 2019, by the decision of the Mayor of Yerevan, the Mayor's decision of May 13, 2017, was revoked and the Kentron District Head was ordered to demolish the unauthorized building at 3/1 Isahakyan Street and liberate 651.83 sq. m of Yerevan community property from illegal possession. 

It should be noted that the building remains standing about a month and a half after the mayor's decision.

New Territory Months After Bankruptcy

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In February 2017, the Municipality signed a contract with David Grigoryan for 20 square meter plot of land with the right of construction. A fast food restaurant operates there now.

It should be noted that Davit Grigoryan is the son of Aghabek Grigoryan, the founder of Golden Lotus LLC. The plot of land allocated to David Grigoryan is next to Manuk Petrchikyan's illegal building.

David Grigoryan pays 60,000 AMD annually for a plot of 20 square meters. The contract is in force until January 25, 2022.

Former MP Karen Shakhmuradyan’s Affiliate 

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One of the largest areas in the second part of the Circular Park is occupied by Ararshin Group LLC, which has been in the park since the early 2000s. Aram and Armen Petrosyans are 50/50 shareholders. 

Aram Petrosyan, along with Armenia-Lada owner Rafael Shahmuradyan, was also a shareholder in Galloper LLC, which deals with the supply of Belarussian, Russian and Italian cars. Karen Shakhmuradyan, son of Rafael Shahmuradyan, who was an MP of the fifth convocation of the Armenian Parliament, worked as Vice President of Sales in 2010-2016.

Ararshin Group LLC was granted a total area of ​​1362.72 square meters in the Circular Park, which is divided into four pieces with corresponding addresses.

According to the State Revenue Committee's website, the company is leasing its own or leased real estate. The area now houses clothing and cosmetics stores, as well as a silver shop.

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The contract states the purpose of land allocation as a café, public building, improvement and landscaping area, although there is neither a café nor a green area in the area.

From the documents provided by the Real Estate Cadastre Committee, it is clear that there is an arbitrary building on 53,78 square meters of 480 square meters of land allocated to the company at 3 Isahakyan Street.

Under the current agreement, Ararshin Group pays 3.660 million AMD annually for a total area of ​​1362.72 square meters, of which approximately 2 million AMD for a café and landscaping area that do not actually exist. The contract expires on October 16, 2030.

From Tagak Farm CJSC to Unibank

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Near the statue of Avetik Isahakyan, at Abovyan 23/2, operates a branch of Unibank. In the past, the territory was leased to Irina Tavadyan's Tagak Farm LLC. 

On December 14, 2005, a lease agreement was signed between Tagak Farm LLC and the Municipality for 250 square meters, which was in force until 2020. The purpose of the land allocation is mentioned as the land occupied by the building, for which the company paid 150,000 AMD annually. On November 22, 2011, Tagak Farm sold its real estate to Unibank and the bank has leased the land since. In August 2016, the Municipality revised the land boundaries, finding that the actual land area was 239 square meters instead of the former 250 square meters.

An agreement between the Municipality and Unibank followed in February 2017. The contract is in force until September 9, 2023.

At the moment, Unibank annually pays 573,000 AMD for 239 square meters.

In the Circular Park Since 2001

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Rialto café operates at 4/1 Moskovyan Street. 463.18 sq.m. area of ​​the café is leased to Yerevan Evenings LLC. The current contract between the Municipality and the company was signed in April 2019, but the company has been renting space here since 2001.

Most of the area is again occupied by the café, while, in the contract, 217.76 square meters of 463.18 square meters of land are formulated as for improvement and landscape gardening, which implies less rent.

Yerevan Evenings LLC pays 1.484 million AMD annually for a land of 463.18 square meters. The contract is in force until December 31, 2021.

Flower Provider of the Investigative Committee and Urban Development Committee

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Private entrepreneur Serzhik Mnatsakanyan has been leasing space in the second part of the Circular Park since 2002. From 2002 to September 2016, Serzhik Mnatsakanyan paid for 20 square meters, but in August 2016, he applied for land borders review and it turned out to be 115.38 square meters, approximately six times more. On September 9 the same year, the contract between the Municipality and Serzhik Mnatsakanyan was terminated and another contract was signed on the same day for the lease of 115.38 sqm area, which is in force until June 1, 2021.

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Serzhik Mnatsakanyan has a flower salon in the space provided to him. According to the State Procurement Accountability website www.armeps.am , Serzhik Mnatsakanyan has been regularly supplying flowers to the Investigative Committee and the Urban Development Committee since September 2018.

Serzhik Mnatsakanyan annually pays 238,000 AMD for the rented land.

Officer at Prosecutor's Office Owns a Bistro

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One of the long-term tenants of the second part of the park is Ohan Muradyan, who held various positions in the Prosecutor's Office from the early 2000s until 2016. At the moment, there’s a fast-food restaurant called Lunch House in the area.

Muradyan has been renting the area since 2003, with only 20 square meters registered in the contract before December 2016. According to the current contract, signed on March 13, 2017, the area of ​​Muradyan's leased land is 70.9 square meters, of which 24.12 square meters as a café and 46.78 square meters as a public building.

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Muradyan pays 285,000 drams annually. The contract has expired on May 21, 2018. However, Arsen Amyan, the head of the Municipality's real estate management department, told Hetq that according to Article 624.2 of the Civil Code, if the tenant continues to use the property after the contract expires without objections from the lessor, the contract is considered as renewed for an indefinite period of time.

It should be noted that Ohan Muradyan owns a number of companies, for example, David Holding CJSC, which operates a number of transport routes in Yerevan and provinces.

Privatized Building of Former Spokesperson for Public Services Regulatory Commission

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Andranik Stepanyan occupied two plots of land in the second part of the Circular Park. These areas, where a small café operates now, are close to the metro station.

37.13 sq.m land plot at 5/2 Isahakyan Street was given to Andranik Stepanyan with the right of construction on April 2, 2016 and is valid until January 1, 2021. The annual fee is 175,000 AMD. 22.88 sq.m area at Isahakyan 5/5 is leased to Andranik Stepanyan, and he acquired the real estate on that plot from ex-owner Mariam Stepanyan, his sister. From 1999 to 2018, Mariam Stepanyan was the spokeswoman for the Public Services Regulatory Commission.

Andranik Stepanyan pays 68,000 AMD annually for the rented space. The lease agreement is in force until January 1, 2021.

Metro Paying for Non-existent Land for Years

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The Yeritasardakan Yerevan Metro Station, opened on March 7, 1981, is located in the second section of the Circular Park.

In 2005, a lease contract of 1805.5 square meters was signed between Karen Demirchyan Yerevan Subway CJSC and the Yerevan Municipality. 11 years later, in August 2016, at the request of the Subway, the municipality adjusted the boundaries of the plot, finding that the actual area of ​​the plot was 1033.04 square meters. It turned out that the Metro had been paying for the non-existent 772 square meters for years.

The old contract has been resolved, and on October 12, 2016, the Municipality and the Subway signed a new contract for the lease of a land of 1033.04 square meters. The annual rent has been set at 3.099 million AMD. The area rent was calculated at 5% of the cadastral value of the land (at the time of signing the contract the cadastral value of the land was 60,000 AMD per square meter). If we calculate with the same logic for the above mentioned 772 square meters, the Metro had to pay 2.316 million AMD more each year before the adjustment.

The current contract between the City Hall and the Metro is in force until December 31, 2025.

Hetq will continue to explore companies that have privatized, rented, and built sites in the Circular Park. We’ll cover the third part of the park in an upcoming article.

Drone pictures by Saro Baghdasaryan

Comments (4)

Գևորգ Մարտիրոսյան
էդ զզվանքների բոլորի ձեռքից պետք է էդ տարածքները հետ վերցվեն և վերադարձվեն քաղաքին, քանի որ.էդ բոլոր պայմանագրերը կազմված են եղել կեղծիքներով և դատախազությունը պետք է դրանցով զբաղվի և չեղյալ հայտարարի
Ալեքսանդր
Բոլոր տարածքների համար սահմանել մեկ քառակուսի մետրի համար 10000դրամ վարձավճար այդ ժամանակ ամբողջ օղակաձեւ այգին կկանաչի մի 100տարի
սոնա երանոսյան
Իհարկե,լավ է, որ շարունակում եք ձեր հետաքննությունները, բայց, անկեղծ ասած, ավելի լավ կլիներ, որհետևանքների մասին էլ խոսվեր, օրինակ՝ ինչ պետք է լինի այդ տարածքների /հատկապես՝ ԼՔՎԱԾ/ ճակատագիրը, ամեն անգամ անտեր սրճարանների մոտով անցնելիս, խենթանալ կարելի է դրանց տեսքից և հոտից: Միթե այդքան դժվար է դրանք ապամոնտաժել և ծառեր տնկել, թեկուզ շաբաթօրյակի ձևով...
սոնա երանոսյան
Ու ինչ?...Լավ է, որ հրապարակում եք, բայց հետո? Ինչ է լինելու դրանց վերջը, հատկապես՝ լքված շինությունների, որոնք դարձել են աղբավայր կամ միզավայր և որոնց գարշահոտությունն ենք շնչում ամեն օր՝ կողքով անցնելիս... Ես, հասարակ քաղաքացիս, թքած ունեմ, թե ով է դրանց տերը, պարզ է, որ սրանք կամ սրաց նմանները պետք է լինեին...Պարզապես կցանկանայի իմանալ, արդյոք հրապարակումից հետո հետևողական եք լինում, թե ինչ քայլեր են ձեռնարկվում, թե...մի խոսքով, հասկանում եք մտահոգությունս, վստահ եմ:

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