The Jewish Agency for Israel and Keren Kayemeth LeIsrael (KKL-JNF) are set to sign a complicated deal in which the JNF will join the Jewish Agency in ownership of Binyenei HaUma - International Convention Center - ICC Jerusaslem, which has building rights to 44,000 square meters at the western entrance of Jerusalem. Binyenei HaUma and its large adjacent car park are on Lot 8 of the huge Sha'ar Ha'Ir - Jerusalem Gateway plan. Current the Jewish Agency owns 75% of Binyenei HaUma and the Jerusalem Municipality 24%.
Sources inform "Globes" that after many years of a fierce dispute between Binyenei HaUma's owners and the Israel Land Authority about the building rights to the car park, all sides have reached an agreement by which the JNF will buy the land from the Jewish Agency and develop hotel projects through its subsidiary Hemnutah, with the Jerusalem Municipality. The JNF's board has approved the deal which should be signed in the very near future.
The plan allows for 205,000 square meters of construction around Binyenei HaUma and the car park for hotels, offices, commercial space and public buildings.
The JNF will be required to pay the Jewish Agency hundreds of millions of shekels in the deal, which will be partly financed by giving the Jewish Agency land in Netanya.
KKL-JNF chairman Danny Atar told "Globes," "Promoting and strengthening Jerusalem is the main aim of the fund. The entrance to the city is a flagship project for the city of Jerusalem that will strengthen the city and allow Israel to compete with other capitals as an attractive place for conference centers and events."
A Jewish Agency spokesperson said, "The Jewish Agency is examining together with the Jerusalem Municipality and other agencies various cplans for developing the land as part of the Jerusalem entrance gateway venture. Among other things there is an initial dialogue on the matter with KKL but so far nothing has been signed. Of course any step would be subject to approval by all the relevant authorized bodies."
Published by Globes, Israel business news - en.globes.co.il - on June 17, 2020
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