Helit Yanai-Luizon , globes.co.il
Last week, the buildings were finally demolished in the first evacuation construction project in Herzliya, on the streets of Mandelblatt and Ibn Ezra in Herzliya. Udi Blum, CEO of the project's Metropolitan Entrepreneur, says the idea for the project was sown to tenants during the missile launches in 2006, during the Second Lebanon War. What helped him get started were two things: the great desire of the Herzliya municipality to execute a first large-scale construction project, and the fact that they were given the authority of an independent committee. "
Metropolis CEO, Udi Blum / Photo: Tamar Mitzpey
Does this mean that in places where there is no will of the municipality or there is no independent authority it takes much longer?
"Yes. In three years in front of the Independent Committee, we made a new BNA and created rights, and it actually went fast."
What do you say about the National Council's decision to end TAMA October 38, 2022?
"Those who are currently leading the world of urban renewal live in some academic world. They say that the 38th MFA is not good, because there is not enough public contribution. But the state can fund slightly less cost-per-housing projects and give municipalities budgets so they can fund the infrastructure needed due to the addition of apartments with urban renewal.
"It should be borne in mind that MMA 38 started from the need to strengthen earthquake structures and to protect against missiles - privately funded. So why is TAMA 38 not good? After all, it is not possible to pick up a construction evacuation. TAMA 38 is the right route because it is the fastest. Any other method is a 15-20 bureaucracy. "
You sound very frustrated.
"We're a business body that wants to move forward and a lot of times we come across walls and I don't understand what."
A week and a half ago, rockets fired again in the direction of the center - you probably get a flood of phones from people who want to strengthen the building.
"We don't do TAMA reinforcement at all - just demolition and construction."
Why?
"We've only done two TAMA projects in the past, and we haven't done more, for several reasons. One, I personally think it's more appropriate for companies that have in-house performance. We are an entrepreneurial company and do not have access to any professional to solve the problem of a tap problem starting on Saturday. In these two projects we did the contractor went bankrupt and we had to bring someone else and lose money. Second, it also seems to me a bit less product. But whoever specializes in it will do. "
"Evacuation of construction is not a substitute for TAMA"
Blum, a CPA by profession, has been serving as CEO of Metropolis since 2014. Previously, for several years, he served as CFO of Kardan.
“At first, it was very traumatic for me because when I left Carden Real Estate she was a big public company with a large backlog of projects, and Metropolis had a little bit of activity on the ground. It was a transition from a public company to a private one, from huge deals to small permits.
"Besides, the world of urban renewal is much more emotional and psychological. Tenants are the landowners with all the meanings of it. They have a lot of distrust and suspicion. The tenants have municipalities and a state that over the years have trouble our feet and change policies."
Today, Metropolis has a large project in Neot Afeka, which is in the permits phase of the municipality, a large project in Givatayim, where seven buildings will be built at the same time, and another project they are promoting in Hadar Yosef in Tel Aviv.
"We have a very deep acquaintance with the municipalities and know what is right for which city. To our delight, we have a cycle of activity and we can look forward and at the same time execute projects. Looking at construction evacuation as an alternative to the GDPR is not good today."
"Only a few percent come to fruition
The maturity of the market also reaches tenants.
"Some of the projects we have lost in the past come back to us after tenants find they have approached less experienced bodies that have not confronted work on five six-lane streets under high-voltage cables. Our motto is not to guarantee what cannot be guaranteed and cannot be implemented. Companies often promise things Because they think they can do well later - we don't. And, really, from the initial bid stage, only a few percent reach the execution stage. "
One criticism of the urban renewal projects is that they "eliminate" the supply of small apartments in the cities.
"It's not like that anymore. The Givatayim municipality demanded in our project a minimum of 20% small apartments, and in all the municipality's policy changes it remained. The Herzliya municipality of the current project also required 20% small apartments, and even in Hadar Yosef the municipality demanded it ".
What about the high maintenance costs in the new buildings?
"In Neve Sharet, there was an agreement between us and the tenants, whereby we established an exceptional committee and funded the maintenance for tenants who have difficulties. The project we are planning now in Hadar Yosef has come to the fore. The economy of residential real estate is quite simple: things we know in advance we take into account Download some of the rewards for tenants and add to the maintenance. Today, there are delegations who say in advance that they want NIS 300 for each family for 10 years, and then put it in Excel. "
How's the sales?
"I don't feel slowed down right now. I have two projects - one in Givatayim that is a city almost without offerings, and Perry Sail in Herzliya and I don't feel slow compared to the pace we were thinking about. Givatayim has a pretty wide mix of special apartments and has a crowd. In Herzliya most of the standard apartments."
Having trouble getting financing?
"No. What other alternatives do banks have to finance? The cost to the buyer? There are almost no other private initiatives. I come from a good and prestigious home, so maybe a little easier for me, but I feel that the banks want to work with us and for every project I get some funding proposals. Of real estate financing went through and today the banks have money to spend. "
Tenants' Attorney: "Only when German left for Knesset did things start moving"
Adv. Oded Israeli, who represented the tenants in the project, is confident that the first project in Herzliya is a first swallow, and that in the next two years, another three or four projects will be released in the city.
Israeli Attorney / Photo: PR
Why did it have to take 13 years?
"The main problem with this project was the incompetence of former mayor Yael German. About five years ago, the project was stuck because of it. When she left for the Knesset, things started moving. I don't think she believed such projects could be implemented - there were almost no projects then in the opinion, it also burdens the urban planning team, which is true. "
MK German said in response to Globes: "I quit my job as mayor about seven years ago and all I saw during my tenure was the public good."
What other delays were there?
Israeli Advocate: "This is a relatively small project - a total of 84 apartments, so we were able to quickly build tenants' trust during the process. The problem was to formulate the planning structure - how many buildings there would be. Besides, we started with a Dory company and at one point with all the problems that had to be replaced then Metropolis came in. They are professional and also pleasant and committed to solving problems. "
What problems were there, for example?
"There were, for example, Amidar tenants, and Amidar requires them to find alternative housing according to the key it determines. Two apartments in the project were actually tailored to the size of their tenants. Second, we had a window of opportunity to make changes for tenants - moving from a smaller apartment to a larger apartment, and the developer cooperated In the end, I divided the apartments between the owners without a lottery - it is a very big puzzle, but everything was shared to everyone's satisfaction. The developer was often required to exchange apartments with us, allocate apartments for us, and they checked that they did not drop the proceeds they deserve and went with us in a lot of things. Not all entrepreneurs act that way. "
What can be done to shorten the range?
"In the municipal-tenant-entrepreneur triangle every time other failures are discovered," says an Israeli. "Obviously the difficult link is the authorities. The municipalities are inundated with various types of projects, construction projects for evacuation of construction, Tama 38, and new construction on a large scale. According to CBS, in Herzliya up to five years ago, 200-300 permits were issued a year. Today it is 1,200. Even if you increase the engineering department, it is very difficult for a professional team to cope with such growth. This is the main barrier.
"I think there needs to be an accessible team. Herzliya has a VP of planning, which if not he, it was very difficult for us to remove barriers. You can email Mayor here and the problem is solved. But not everywhere has it. On the tenant’s side, they must choose a professional team to lead it and trust it. And in the entrepreneur's side, someone needs to make a project for this kind of urban renewal. I work with Ashdar, with areas, with all the big developers - and a project that is handled properly. If the entrepreneur is not professional enough, there are jumps of months and delays. "