Armenian Society speaks to financials

Fred Ortega

There has been growing concern in the community about what the

Armenian Society of Los Angeles plans to do with $5 million it got

from the city to build a new headquarters on South Louise Street.

Speculation has grown since the Glendale Redevelopment Agency

rejected the society’s preliminary plans in late May for a

53,000-square-foot, glass-and-steel structure including a theater and

banquet facilities. Some members of the Armenian community have asked

whether the society has an investment plan for the money pending city

approval of the new headquarters, and whether the money spent so far

has been used adequately.

Despite the rejection, the society is still negotiating with the

city to come up with a viable plan and has actually increased the

amount of money available to it through investment, President Tomik

Alexanian said.

The $5 million -- part of a land-swap deal between the society and

the city to help make way for the Americana at Brand project -- has

grown by more than $119,000 since the society received it in August

2003, Alexanian said.

“Based on our tax returns filed this year, we had $5,119,617 in

our account as of Feb. 28,” he said. “We have spent about $110,000 of

the money, but the interest earned has been much larger. The CDs we

had the money in have been renewed and interest has gone up above 2%,

so while we were receiving $100,000 a year in interest, we will be

receiving closer to $140,000 per year in interest until we start

construction.”

Of the $110,000 spent so far, the society has spent about $80,000

for preliminary engineering and architectural designs and the rest on

air conditioning design and environmental impact and land use

studies, Alexanian said.

“Our books are open and anyone can come and look at our

statements,” he said.

Alexanian appeared on “The Larry Zarian Forum,” which airs at 7

p.m. Thursdays on Charter Communications Channel 26, spurred by

inquiries Zarian said he had received from his viewers about the

society’s funding.

“There are some people within the Armenian community and elsewhere

who were questioning the expenditures, what would happen to the $5

million and how they were spending it,” Zarian said.

The rejection by the Glendale Redevelopment Agency, made up of

City Council members, seems to have added to those concerns.

Councilman Bob Yousefian said at that meeting that the project was

larger than what the society needed, and that it would be unrealistic

to expect that the group would be able to complete construction even

with the $5 million provided by the city.

“Knowing what they have proposed, and being a contractor myself, I

don’t believe the organization will be able to borrow the money to

complete such a project,” Yousefian said. “If the organization goes

belly up, the $5 million we gave them would be wasted.”

Among those questioning how the society was spending the money is

Albert Abkarian, a local attorney and longtime honorary member of

the society who was recently made a permanent member after what he

said was a 2 1/2 -year delay.

“I am requesting a community committee to review the funding and

how it is spent,” Abkarian said.

Abkarian received access to the society’s records and found no

evidence any wrongdoing by the society’s board of trustees, he said.

“But as far as whether checks were written for services that were

unreasonable in any way, I have no idea,” Abkarian said. “I believe,

along with a lot of other people, that the society can build a center

that suits it better at a smaller scale and with a better design.”

The society is still working with the city to come up with a

design that works for both sides, Alexanian said.

“We are making contact with city officials and hopefully we can

meet somewhere in the middle,” he said. “Maybe we will reduce the

size a bit, make some adjustments.”

In the meantime, the society is preparing to move to their

temporary home at 320 Wilson Ave., which is also being paid for with

$250,000 of city money. Staff members should complete the move out of

the society’s old building, located on South Brand Boulevard, within

the next two to three weeks, Alexanian said.

An election for the society’s board is also scheduled for this

Friday, he said.

* FRED ORTEGA covers City Hall. He may be reached at (818)

637-3235 or by e-mail at fred.ortega@latimes.com.