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Yerevan City Hall Fails to Operate “Yerevan Wellness,” Budget Funds to Be Allocated
Yerevan, October 13 – Yerevan City Hall is reportedly encountering substantial difficulties in managing “Yerevan Wellness,” the sports and health center that was controversially transferred from “Multi Wellness.” Arman Piroyan, the head of “Multi Wellness,” stated in an interview with “Pastinfo” that the City Hall will soon be compelled to allocate funds from its budget to cover the club’s utility payments and employee salaries. This development follows the Yerevan City Council’s decision today to transfer the property belonging to “Multi Wellness” to “Yerevan Wellness” for a five-year period of gratuitous use.
Controversial Transfer and Operational Challenges
The transfer of the “Multi Wellness” property to “Yerevan Wellness” has been a contentious issue. Piroyan emphasized that the City Council’s decision is illegal, mirroring the alleged illegality of all previous actions taken by Yerevan City Hall concerning the property. He highlighted that the “Multi Wellness” facilities, valued at approximately 6 billion drams, remain on the premises, despite the City Hall only leasing the walls and land.
“In reality, they are now unable to operate a huge organization. Moreover, I have information that the City Hall will soon have to start allocating money from its budget to this club to maintain it. The vast majority of our customers no longer frequent this club, which has led to financial problems. On the other hand, they do not have a team; the main professional specialists of the team did not go back to work with them,” said Piroyan.
He further contrasted the current situation with the previous operation of “Multi Wellness,” stating, “While we were paying 40-42 million drams in taxes to the state every month, out of which we transferred 3.6 million drams to the City Hall for construction, and besides that, we transferred money for other services. Whereas, I insist, the City Hall will have to start making transfers soon to be able to pay for gas, electricity, water, and staff salaries.”
Legal Battles and Unresolved Issues
Piroyan reiterated that “Multi Wellness” has filed several lawsuits against both the City Hall’s actions and the Cadastre Committee. However, progress in these legal proceedings has been slow. “There is no movement in the court cases; the only case for which a court hearing date has been set is against the Cadastre, scheduled for February 2027. For other lawsuits, it is not yet clear when those hearings will be, when we will get answers to our questions,” he explained.
He also pointed out the hypocrisy in the City Hall’s approach: “While there are still cases in court, they are already giving our property to another company for a five-year period. Moreover, our equipment, our property are located in that area, although they only rented out the walls and the land. At this moment, there is approximately 6 billion drams worth of property there.”
Piroyan stressed that the violations previously cited by the City Hall as justification for initiating the entire process have not been rectified. This, he argues, suggests a double standard, where actions deemed unacceptable for “Multi Wellness” are permissible for “Yerevan Wellness.”
Background of the Controversy
The situation surrounding “Multi Wellness” and “Yerevan Wellness” has been a subject of public debate for several months. Earlier reports from “Pastinfo” and other media outlets have highlighted concerns about the legality of the property transfer and the operational challenges faced by the newly established “Yerevan Wellness.” The case has drawn attention to issues of property rights, legal due process, and the role of municipal authorities in business operations.
The controversy dates back to at least July 2026, with a series of related publications by “Pastinfo” detailing various aspects of the dispute, including accusations of state racketeering and the City Hall’s alleged inability to manage the facility effectively. The ongoing legal battles and the financial implications for the City Hall’s budget are likely to keep this issue in the public eye.
Source: Pastinfo.am
