The state has signed another roof agreement with a local authority. The Ministry of Finance, Ministry of Construction and Housing, and Israel Land Administration (ILA) yesterday signed a roof agreement with the Nahariya municipality under which the municipality will market close to 10,000 housing units over the next two years. The NIS 1.7 billion agreement also includes 270,000 square meters of industrial space and 110,000 square meters of commercial space on state land. In addition to the housing units, public institutions will be built in the town, including synagogues, schools, kindergartens, community centers, and sports facilities.
The NIS 1.7 billion roof budget includes NIS 1.4 billion in development work, an estimated NIS 225 million for public institutions, and NIS 110 million for upgrading old construction and new construction. The Ministry of Transport also allocated NIS 270 million under its five-year plan.
The new housing units are planned for four areas in the northern and eastern parts of the town on the northern coast, near a stadium, a northeastern neighborhood, and the Sha'ar and Ben Ami neighborhoods in eastern Nahariya. The state marketed lots in the town for 2,000 housing units in three areas in recent years: Rasco, Ussishkin, and the northeastern neighborhood. The new agreement will increase Nahariya's 20,000 housing units by 50%.
The room agreement was slated for signature several months ago, but the event was canceled at the last minute due to opposition by the municipality after it realized that increasing the town's size would cause it to lose tax benefits for its residents. Only after the government promised legislation changing the threshold conditions for these tax benefits did the parties resume negotiations culminating in the signing of the agreement yesterday.
"The agreement will enable Nahariya to continue growing"
"The agreement will enable Nahariya to continue growing, developing, and moving forward. The roof agreement makes it possible to market thousands of housing units in the framework of the buyer fixed price plan that will enable young people in Nahariya and the surrounding area to live near their families," Minister of Finance Moshe Kahlon said. "The roof agreements ensure that there will be schools waiting for children and daycare centers waiting for babies, not the other way around. We'll continue building all over Israel."
Minister of Construction and Housing Maj. Gen. (res.) Yoav Galant said, "The roof agreement in Nahariya is another in a series of measures on behalf of the outlying areas. This is a very important agreement that will increase the number of people in the town by 50%, accelerate job creation, add industrial zones, and provide educational and transportation solutions. This roof agreement follows a number roof agreements that we have led in the past three years dramatically shortening development time and strengthening towns and their residents."
Ministry of Construction and Development director general Haggai Reznik said, "This is an important roof agreement that allocates hundreds of millions of shekels for construction of public institutions and improving infrastructure."
ILA director Adiel Shomron said, "ILA is expediting the planning and marketing processes in order to make land available for housing on a large scale. Over 2,000 housing units were marketed in the town just in the past two years. We believe that the roof agreement in Nahariya will give the town growth and economic prosperity."
Opponents: A real estate bubble with no foundation has been created in Nahariya
Together with the celebrations of the signing of the Nahariya roof agreement, some people are unhappy about it. Members of the Social Guard in Nahariya who have campaigned against the signing of the roof agreement yesterday claimed that it was a mistake.
"Member of the Social Guard in Nahariya worked in advance and demonstrated against the signing of the roof agreement adding 10,000 housing units. In effect, a real estate bubble with no foundation has been created in Nahariya. This is what the irresponsible room agreement in Nahariya has created. Everyone already knows that there are empty apartments in Nahariya. Everyone already knows that people in Nahariya need an educational system, a business zone, livelihood, and transportation solutions. To decide to build thousands of housing units with no thought about basic infrastructure is stupid. The municipal sewage system is older than the state of Israel; it will be unable to accommodate more people. Just what roads will these residents travel on? At what schools will they learn? This is a disgrace.
Published by Globes [online], Israel business news - www.globes-online.com - on June 20, 2018
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