TO: Prime Minister of the Republic of Armenia
Mr. Nikol Pashinyan
Address: Republic Square, Government House 1, 0010, Yerevan
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Minister of Economy of the Republic of Armenia
Mr. Vahan Kerobyan
Address: 5 M. Mkrtchyan, Yerevan 0010
Chairman of the Urban Development Committee of the Republic of Armenia Mr. Armen Ghularyan
Address: 0010, Yerevan
Hanrapetutyan Sq., Government House 3
Head of State Control Service Mr. Tigran Ulikhanyan
Address: Yerevan, Avenue Mashtots 47
Minister of Foreign Affairs of the Republic of Armenia
Mr. Ara Aivazian
Address: Government House #2, Vazgen Sargsyan 3, Yerevan 0010, Republic of Armenia
Ambassador Extraordinary and Plenipotentiary of U.S. Embassy in Armenia, Ms. Lynne Tracy,
1 American Avenue, Yerevan 0082,
FROM: Shareholder օf “Estate Investment and Development” LLC, citizen of USA Hakob Avagyan
Representative in the Republic of Armenia
Attorney A. Harutyunyan
Address:Yerevan, Komitas 19/1, office 23/1
Tel.: 37493133709, 37491133709
Dear All,
“Estate Investment and Development” LLC, which operates under the 1SQ or 1ՔՄ brand, was founded in 2018 and is an organization with American capital. The company carries out activities in the field of real estate construction and management. The managed portfolio is about 85 million US dollars. The number of current programs is 5, one of which is in Kotayk region and 4 others are in Yerevan.
Despite all the existing difficulties, the company successfully implements its programs thanks to its professional team and its overwork.
During the past three years, the company has faced many problems, which it has overcome due to its patient, hard work and high civic consciousness. However, I will try to describe the course of one of the programs more vividly. It looks like as the famous “Mario” computer game. You eat the mushrooms, you grow up, then you touch the hedgehog, you get smaller again, then you fall into the abyss and the game starts again. In a word, you go through all the worlds and at the end, you meet the Devil, which in the field of construction is called “get a final-exploitation act”.
The problem, which has already crossed all the limits of our patience, refers to the process of passing one of the next programs, the world of Devil. This process takes about 3-5 months, but can actually be performed in a month. In our case, it took about 2 months before applying to the municipality and about a month in the municipality. Unfortunately, after these terms we could not pass the Devil, we fell into the abyss and we have to start the game again.
The question arises as to how a process can take months, in the conditions when according to the Desicion 596 adopted by RA Government on 19.03.2015 the process must be completed within 5 days after the documents are submitted to the municipality. Let me tell you, in one of the windows of the municipality you are persuaded to circulate the papers without registering in order thet can look, if there is anything to change, they will say what shall be changed, then it will be normal, we will enter and will receive the final-exploitation act within 5 days. Thus, after our documents “travelled” through different cabinets for about a month, we learned that there were deviations from the renovating project of the building and of the adjacent areas. 4 areas were built at the place of two parking lots in front of the building and were planted with greenery. On the other side, a 5 square meter lawn was built with a 1 meter design deviation. The company accepts this fact.
We applied to the company providing legal services to our company, which reported that Article 190 of the Decision 596 of the Government of the Republic of Armenia adopted 19.03.2015 regulates similar situations and stipulates that if the facility is put into operation in winter, in case of defects in improvement works, the final act is given on condition that in spring or summer the developer must eliminate those shortcomings.
In parallel with formal submitting the documents to the municipality, we submitted an application that in case of finding defects in the improvement works, the final act should be given on the condition that the developer is obliged to eliminate those defects in spring or summer months.
5 days later we received a rejection and an offer from the municipality. It is suggested to either bring the improved parts to the design (which is clearly not possible during the winter months) or to apply to the municipality again to make changes in the improvement design. The mentioned process usually takes at least a month in the municipality.
This means that the program did not pass the world of the Devil, the fell in abyss and the last world must start again.
During this time
– The company suffers a loss of about 20 million drams, not counting the risks of foreign exchange.
– About 400 million VAT arising from the sale is not paid to the RA state budget
– The shareholder is tired of fighting, he stops his activity in Armenia.
With respect,
Shareholder
US citizen
Hakob Avagyan
For more information, you can contact my representative in the Republic of Armenia Attorney A. Harutyunyan.
