Last week, President-Elect Donald Trump instructed to check out the alternatives for moving the US embassy from Tel Aviv to Jerusalem. At the same time, Jerusalem Mayor Nir Barkat criticized the Finance Committee's plan to provide international companies with tax benefits if they establish operations in the Greater Tel Aviv area. He said that such a move makes benefits in Jerusalem and Israel's outlying areas redundant. Barkat, who is well versed in both the Israeli government and US administration, hopes that future changes bode well for his city, but is not ready to give up on tax benefits that provide an edge over the "State of Tel Aviv".
The US President-Elect has already been making statements favoring Israel's political right. Is this being felt in Jerusalem's planning committees, in terms of less restraint in developing neighborhoods beyond the 1967 borders?
"Let's hold our horses. At present Trump is engaged in building his staff. It seems that his opinions are more in line with those of the prime minister and me. Considering his past statements, it should be easier, and I hope that it is. As far as I know his staff, I believe that we have similar opinions."
What do you think about the promise, already made in the past, to transfer the embassy to Jerusalem?
"We will have to wait and see. We will provide whatever help we can. This statement is important for Jerusalem, it is important in terms of values, and it is the right thing to do. This should have happened years ago and I hope that it is realized soon. We eagerly await this and we will help the Americans with any solution they decide on."
Let us talk about a more basic kind of real estate. Why has urban renewal been treading water in Jerusalem, compared with central Israel?
"This is not the case. Jerusalem is the city that has made most progress in Israel in terms of urban renewal. Two years ago we established a directorate that has generated a fascinating range of solutions for the speeding up of urban renewal. We currently have 8,300 homes planned for urban renewal implementation. We have made across-the-boards cuts in urban renewal betterment taxes. The scale of urban renewal operations in Jerusalem are some of Israel's highest, as the Ministry of Finance could confirm.
So why has it been stuck?
"It has been stuck throughout Israel. We have created a new track, that did not exist before, it which we encourage residents to join together and reduce distrust between developers and tenants. In the past, there had been no demand, I did not like this and in the past few years we have many very significant changes. Moriah Jerusalem Development Company is fully controlled by the municipality and provides free consultation on this issue."
"Jerusalem is under threat"
Barkat is concerned about talks on expanding tax benefits to international companies in the Greater Tel Aviv area, which already enjoys high demand levels: "The state has defined areas with the Development Area "A" status, where it wants to encourage high tech industries and preferable plants, which include Jerusalem, Beersheva and Israel's outlying areas. This is not new, Jerusalem is an "A+" development area, with incentives that do exist in other places, because it is Israel's capital and it is the national interest to strengthen it. This is a national project, a national mission. Jerusalem is subject to more threats. We have had quite a few challenges here, with complex populations. These are the incentives that could help Jerusalem keep its head above water, and we have succeeded in doing this. It is vital for the state of Israel to not only have a "State of Tel Aviv" and for young entrepreneurs to come to northern and southern Israel, as well as Jerusalem.
"Suddenly, out of the blue, the government is taking it all away. This is detrimental to the national interest, it will weaken Jerusalem, and is unacceptable. We will fight for this not to take place. Me and Ruvik (Danilovich, the mayor of Beersheva-A.S.), will fight against this. In the past few years, all the new startups know that they are being prioritized - there is Zionism, patriotism and also benefits.
And what about estimates that you will run for Likud leadership and for prime minister?
"This is not on my agenda, my dear. It is really not on my agenda. Just let me do my job."
Published by Globes [online], Israel business news - www.globes-online.com - on December 18, 2016
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