25 independent produce wholesalers in the Tel Aviv wholesale produce market, who are unaffiliated with Wholesale Market Co. for Agricultural Products in Tel Aviv Ltd., are opposing the plan for the wholesale market site, in which Tnuva is the dominant factor. The Tel Aviv wholesale market is located between in the triangle between Petah Tikva St., Carlebach St. and Hasmona'im St.
The independent wholesalers claim that Tnuva no longer handles agricultural produce so therefore no longer considers the Tel Aviv wholesale market as source of income, as they do, but as prime real estate. They claim that Tnuva is trying to prematurely force them to vacate the market, while harming their rights. The independent wholesalers added that Wholesale Market Co. had reached an agreement, under which each member would receive three apartments in the project planned for the site, in exchange for shares in the company, but that they had been excluded from the final arrangement.
The Tel Aviv Local Planning and Building Commission recently rezoned the 55-dunam (13.75-acre) site of the wholesale market for a multi-purpose office, commercial and residential project. Most of the buildings will be ten stories, and four will have 40 stories. The project will have 220,000 sq.m. of space, including 100,000 sq.m. of office and commercial space, and 1,125 apartments covering 120,000 sq.m., as well as an underground parking garage for 3,500 vehicles.
Under the vacating agreement, each member in Wholesale Market Co. will receive up to three apartments in the new project as compensation. The independent wholesalers in the market are disputing the amount of compensation. On the basis of tax assessments, they are demanding $1.5 million per commercial unit in compensation. They are considering suing Wholesale Market Co. and the Tel Aviv municipality in order to participate in the final settlement, which has been reached.
Published by Globes [online], Israel business news - www.globes.co.il - on March 6, 2005