The building plan for Tel Aviv's Rova 5 and Rova 6, the heart of the city, is set to be deposited for objections after eight years of bureaucratic red tape and foot dragging. Four years after the building plan for Rova 3 and Rova 4 (the Old North and New North) was approved to the immediate north of the center of Tel Aviv, there is finally progress for arranging building rights in central Tel Aviv, which will allow urban renewal through TAMA 38 and other programs, in the most sought after locations in the city.
Tel Aviv-Yafo Municipality began work on the building plan for Rova 5 and Rova 6 more than a decade ago. The plan divides the central part of the city into different areas, and the idea is to form specific and separate policies for each area with similar characteristics to speed up planning and ensure clear guidelines on urban renewal and development.
Approval of the plan gives developers and contractors, planners and residents as well as the relevant planning authorities, certainty about the permitted scale of construction in areas of the city, and in particular the amount of building allowed in urban renewal plans. Delays in approving the plan for Rova 5 and Rova 6 has left development, planning and building shrouded in uncertainty for many years.
When the Tel Aviv-Yafo Municipality decided to form an orderly district plan for Rova 5 and Rova 6, the goal was to approve separate plans for the districts, detailed plans that would allow construction to be carried out, and to do so as quickly as possible, in order to create certainty in all areas of the city.
In practice, the situation was much more complex, partly because Rovas 5 and 6, and especially Rova 5, are within the area of UNESCO's declaration in 2003 of Tel Aviv's "White City" area as a World Heritage Site because of its Bauhaus architecture. In fact, 90% of the plan's areas are in UNESCO territory, where strict conservation is required that greatly limits the scope of construction in the area and prohibits demolition and construction of many existing buildings. In other words, this declaration does not allow massive urban renewal in this area of the city.
The policy: Buildings of no more than seven floors
UNESCO's declaration was not the only reason for the delays. In January 2014, the Tel Aviv Planning and Construction Committee met to discuss the issue of imposing building restrictions in the area of the plan, but by April 2018, nothing had happened. At this point, it was decided to extend the restrictions for another three years. Now, when the additional extension has also come to an end, the plan is finally being pushed forward to the next planning stage, which will allow the submission of objections from the public.
Nearly 50,000 people live in Rova 5 and Rova 6. Rova 5 is bounded by Bograshov beach in the west, Ben Zion Boulevard in the north, Derekh Begin and Carlebach in the east and Derekh Yafo in the south. Rova 6 is to the east of Rova 5 between Ibn Gbriol, Carlebach and Menachem Begin in the west, Shaul Hamelekh boulevard in the north, the Ayalon Highway in the east and Harekevet Street in the south. These are the most high demand areas and include the Kirya, former wholesale market, Rothschild Boulevard, the Habimah complex and Neve Tzedek.
The plan for Rova 5 and Rova 6 only relates to zoning for housing including apartments above existing commercial properties and empty lots zoned for residential and commercial construction and only buildings not slated for preservation of the existing urban fabric. The plan sets binding building rights and construction principles to preserve the unique urban and architectural values in the UNESCO heritage area.
The plan divides Rova 5 and Rova 6 into two distinct areas - inside the UNESCO heritage area, and outside of it. In the UNESCO heritage area, both in the residential areas and commercial zones, it will be permitted to build up to six floors, plus a roof floor, but on some lots only up to five floors plus a loft. Outside of the UNESCO area, in the west of Rova 5, construction of up to seven floor plus a loft will be permitted. On the roof floor itself, construction of up to 65% of the surface area of the floor below it.
The plan also defines the Carmel market and the area near the Israel Electric Co. offices as commercial areas, and also defines main commercial streets within the districts: Allenby, Ben Yehuda, Carlebach, Harakevet, Menachem Begin, Carmel and Yehuda Halevi - in the southern section between the corner of Barzilai and the corner of Allenby. In these streets buildings will have commercial premises on the ground floor, with commercial uses of at least 50% of the area: shops, cafes, eateries, restaurants, bars, gyms, institutes and personal services. The rest of the area is zoned for offices and use of a "public nature" - education, health, sports, culture, welfare and community.
One of the most expensive areas in Israel
Rova 5 and Rova 6 are considered to be one of the most high demand areas of Tel Aviv and Israel in general. The financial significance of any construction, even the smallest, in these areas, is enormous.
Real Estate Appraisers Association of Israel deputy chairman Saar Peled said, "This is a plan about a lot of money, to say the least. It is one of the most valuable areas in Israel today. This is an area with old buildings, and extensive preservation, and the increase in value also depends on the size of the plot, its shape, the number of existing tenants, the physical condition of the building, and more.
"We are already at historic price levels in these areas: apartment prices in the city center are very high, but the certainty that the plan will provide for Rova 5 and 6 may affect that. This is the main message of the plan, in my opinion. Urban renewal in the center of Tel Aviv is here to stay. It is guarantees that it will be possible to carry out urban renewal in these areas even after TAMA 38 ends, and something like this can give a little extra 'push' to prices."
As for charging betterment levies in these districts, Peled suggests waiting, at the very least, until the contradiction that has arisen between the rulings of the appeal committees of Jerusalem and Tel Aviv is resolved, on betterment levies in urban renewal plans and overall plans. "In the end, the matter will only be resolved in court," he stressed.
The future: A plan that will lead to a wave of renewal in the area
Progress towards approval of the plan may speed up construction in both districts - this, in light of what is happening in the neighboring districts to the north.
Ori Muhlbauer of Muhlbauer Architects, which is responsible for many Tel Aviv projects said, "This plan for Rova 5 and 6 is a direct continuation of the plan for Rova 3 and 4, which has been implemented in the city over the past few years and has sparked a great wave of construction and renewal. The plan will give planning certainty to the area, where until now we had to rely only on rights under TAMA 38."
She added, "This is a relatively conservative plan, which in my opinion will allow for limited renewal, due to reduced economic viability, and is similar to what is currently happening in Rova 3,. With all the desire to make the city denser and build higher, I agree with the municipality, which is preserving the existing character of the area. That is why the approval is expected to lead to a wave of renewal in these areas, but it will be a limited renewal that will suit the special character of the area."
Published by Globes, Israel business news - en.globes.co.il - on November 23, 2022.
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