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Karen Demirchian Sport & Cultural Center To Be Sold To Russian Co.

YEREVAN, AUGUST 25, NOYAN TAPAN. According to the RA Government
Information and PR Department, at the August 25 sitting, the RA
government made a decision to alienate through a direct sale the
property of two state noncommercial organizations – the Cultural
Center and Yerevan Sport and Cultural Center after Karen Demirchian,
after separating the property assigned and belonging to these
organizations by the payment order prescribed by law, to the
commercial organization founded by the previously known buyer Bamo
Ltd, registered and operating in Russia. The total value of the
property was assessed at 2 bln 848 mln 805 thousand drams (about 6.33
mln USD) according to the balance method established under RA
Government March 27, 1998 decision No 209. The buyer offered 2 bln
565 mln or 90% of the assessed value, which was set as the price of
the property, to purchase the overall property. Under the decision,
the purchasing organization will receive, in order prescribed by law,
the right to rent the land area of 19.54 ha occupied by Yerevan Sport
and Cultural Center after K. Demirchian for a period of 50 years, with
the preferential right to its purchase at the current cadastre value
of land in the RA. The decision stipulates that the founded
organization has such obligations as preserving the name and
activities profile of Yerevan Sport and Cultural Center after K.
Demirchian; making investments of 4 bln 275 mln drams within 3 years,
with most of this sum to be allocated for major repairs of the sport
facilities; signing, within 10 days after the state registration, job
contracts with the 99 employess of both state noncommercial
organization for at least 6 months and envisaging the minimum salary
of 50 thousand drams; organizing up to 5 events of republican
significance each year by the RA government’s bid, etc.

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