Tel Aviv plan could add 5,000 homes in city center

Tel Aviv photo: Shutterstock/ASAP Creative

The plan for the Rova 4 neighborhood should give a considerable boost to urban renewal in central Tel Aviv.

The plan for the Rova 4 neighborhood in central Tel Aviv has been signed by the Tel Aviv Local Commission for Planning and Building. The next stage is the Tel Aviv District Commission, which can approve it and make it valid. The date for final approval will probably be next week. As part of a petition filed several months ago by the National Outline Plan developers and the Federation of Israeli Chambers of Commerce against the delay in approving the neighborhoods plan, the parties agreed that the Rova 4 plan would be approved by the end of May, i.e. next week. Now that the Tel Aviv City Council has now done its part by signing the plan, it remains for the District Planning and Building Commission to meet the deadline.

At the same time, after the plan is made valid, the National Outline Plan developers fear that that Tel Aviv municipality plans to return all of the applications to carry out projects that were waiting for the Planning and Building Commission to approve the neighborhoods plan, and demand that they be resubmitted in accordance with the plan that was approved. It is believed that the ground is being prepared for new arguments and requirements concerning betterment tax. Once the neighborhood plan is approved, the arguments about betterment tax and whether the rights in the project stem from the new plan and are therefore subject to betterment tax or result from National Outline Plan 38 and are therefore exempt will be resumed. The industry is now waiting to see the municipality's argument concerning betterment tax. In addition to the developers' concern about additional or new betterment taxes, homeowners are also worried, because once the plan is approved and making the National Outline Plan 38 rights in the relevant neighborhood are made vested rights, the municipality will be able to charge homeowners betterment tax on these rights that can be in the hundreds of thousands of shekels when a home is sold.

Thousands of apartments in the city center

The plan involves implementation of National Outline Plan 38 in central Tel Aviv. Both the National Outline Plan 38 developers and owners of apartments in the old buildings have been waiting for this plan for many years in order to push ahead with projects in their area. The plan establishes rule and rights within the boundaries of the 2,800-dunam (700-acre) neighborhood. The area is bounded by Ibn Gabirol Street on the west, the Ayalon Highway and Namir Road on the east, Rabbi Kosovsky Street and Bnei Dan Street on the north, and Shaul Hamelech Boulevard on the south. A large number of National Outline Plan 38 projects are likely to be go ahead when the plan is approved, meaning not only reinforcement of old buildings, but also the addition of thousands of apartments in the city center.

The plan turns National Outline Plan 38 rights within the neighborhood boundaries into vested rights and establishes incentives for urban renewal projects in preference to projects for reinforcing old buildings and construction of new floors. According to the plan, urban renewal projects up to eight storeys will be allowed. Commenting on the plan on his Facebook page, Tel Aviv Deputy Mayor Doron Sapir wrote, "Good news for residents of the Rova 4 neighborhood. I signed the plan for the Rova 4 neighborhood, one of the plans for the neighborhoods in central Tel Aviv, a few hours ago… The plan has the potential to add 5,000 housing units to the city."

Published by Globes [online], Israel business news - www.globes-online.com - on May 24, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Tel Aviv photo: Shutterstock/ASAP Creative
Tel Aviv photo: Shutterstock/ASAP Creative
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