The deal is being transacted according to Resolution 727. The kibbutz will receive a $4.5 million deposit to repay loans.
Contractor Sammy Matzlawi is conducting advanced negotiations with Kibbutz Gezer to purchase land for 145 cottages. The kibbutz will receive 26-28% of the sales revenues from the cottages. The kibbutz’s remaining land for residential construction will be transferred to the Israel Land Administration.
The kibbutz, located 4 km. east of Ramle, owns land for the construction of 342 cottages and 20,000 sq. m. of commercial space. Resolution 727 allows the kibbutz to receive 27% of the land from the ILA for construction of the cottages. The kibbutz was to receive land for 92 units and for construction of 5,400 sq. m. of commercial space. In the secret negotiations with senior ILA officers, it was recently agreed that the kibbutz will waive its rights to the commercial land in return for the right to build 145 cottages.
According to the assessment of parties to the negotiations, cottages will be sold for $300-310,000 including VAT. It was agreed that Matzlawi will give the kibbutz a $4.5 million deposit. This amount will be used to repay part of the kibbutz debt to Bank Leumi, Bank Hapoalim, other banks and the Jewish Agency.