Hayk Marutyan Authorized to Sign Agreement on Public Interest with Private Company

The government made a decision at its session today, July 29, to authorize the Mayor of Yerevan to sign an agreement on behalf of the Republic of Armenia with "G M D Developers" LLC regarding the rights, obligations, and responsibilities of the state and the acquirer during the property expropriation process at the restricted area located at 76-80 Amiryan Street and 103-105 P. Buzandi Street in Yerevan.

The justification for the decision states that it is necessary to sign an agreement with "G M D Developers" LLC to define the rights, obligations, and responsibilities of the state and the acquirer during the property expropriation process because, according to legislation, if the acquirer of the property being expropriated for public and state needs is not the state, the decision on recognizing an exclusive public interest will be accompanied by the agreement signed between the relevant public administration body and the acquirer.

If the acquirer is not the Yerevan community and if the expropriated property is located within the administrative territory of Yerevan, then the Government of the Republic of Armenia has the right to delegate the authority to sign the agreement on behalf of the state to the Mayor of Yerevan. This agreement comes into effect at the moment the government decision recognizing the exclusive public interest enters into force.

It is already recognized that there is an exclusive public interest in the mentioned area, and the acquirer of the area has been recognized as "Leader Mobil" LLC. According to Article 10, Clause 1 of the law, "The acquirer is obliged to properly send the draft of the property expropriation agreement (hereinafter referred to as the expropriation agreement) to the owners of the property being expropriated and those who hold property rights to the expropriated property until the final deadline established by the government's decision recognizing the exclusive public interest." Considering that during the final deadline for the expropriation process, the draft expropriation agreements have not been sent to certain owners in the area, the government decisions concerning unsold properties have been declared invalid in accordance with Article 16, Clause 1 of the law, and "Leader Mobil" LLC has been recognized as bankrupt.

The Armenian government had approved an investment program presented by "G M D Developers" for the construction of a multi-apartment building in the interim area between the State Institute of Theatre and Cinema of Yerevan and Mushkeg Ishkhan's number 5 secondary school in Yerevan's Central Administrative District back in 2017.

According to the memorandum decision, the investment program is planned to be implemented in two phases: The first phase involves the construction of a multi-apartment building in the area adjacent to the State Institute of Theatre and Cinema of Yerevan and Mushkeg Ishkhan's number 5 school, covering a total area of 1278.07 square meters, along with the demolition of an existing building measuring about 955.69 square meters to construct a new building for the Sosi Sargsyan National Theatre (hereinafter referred to as the Theatre). The second phase plans to execute the urban development program that was not implemented by the prior acquirer "Leader Mobil" LLC in the area limited by Amiryan Street 76-80 and P. Buzandi Street 103-105, for public and state needs.

After the signing of the agreements, it will be possible to recognize the exclusive public interest for the mentioned area and complete the implementation of the urban development program, which would lead to the removal of dilapidated residential buildings from the center of Yerevan due to private investments and modernize the area in the respective part of the Main Boulevard, reinforcing the applicable infrastructure, while increasing the commercial and cultural significance of the area, making it harmonious with the already developed adjacent areas.