Calcalist, Dov Cohen, 01.03.2020
The citysquare social renewal event in Tel Aviv, held this week in Tel Aviv, provided the hostel with discussions on the most burning issues in the industry, and included first-hand references from state officials to the future.
Deputy Attorney General Erez Kaminitz emphasized the centrality of urban renewal in planning officials' long-term policy, saying that "after the Metro project, the need to promote urban renewal is probably the biggest challenge awaiting the next government."
The chair of the Tel Aviv District Planning and Building Committee, Danielle Posk, addressed the need to make the urban renewal sector a national mission. "We are preparing for a significant acceleration in the urban renewal in the next five years. The amount of crumbling buildings is only growing.However, success in the field will be urban renewal in Beit Shean - and not in Tel Aviv, where land values are high. "
Deputy Speaker Kaminitz addressed the state's barriers to urban renewal: "One of the main obstacles of the area is the phenomenon of extortionate tenants who are halting projects because of their demands. We see no other solution to the phenomenon than reducing the percentage of consent required to promote urban regeneration projects, from 80% to 66%. We believe that we will put greater pressure on extortionate tenants and will be able to bring about project promotion better. "
Kaminitz also addressed one of the weak points of urban renewal projects, which jeopardize their certainty - the issue of improvement levies. "Unlike the current situation, where the levy levy is at the discretion of the local authorities, we are promoting a 25% levy on urban renewal projects. A local authority that wants to charge more or less will have to bind it in advance."
Unlawfully Tel Aviv
"Predicting the rate of improvement levy that will be 'blindly' charged, regardless of the nature of the project itself, its location, the apartment multiplier received by the developer, etc. - will not promote eviction and construction projects," says Adv. Nuriel Orr, owner of Or Co. - Office Lawyers, specializing in, among other things, accompanied by urban regeneration projects, for example, there is a problem in the periphery, where land values are not high enough to allow developers to provide benefits to existing homeowners and gain from the sale of new apartments. Otherwise, the situation that characterizes the market today will continue, and it is precisely in communities that need more than any renewal of a city. And, projects are rarely carried out due to lack of profitability. "
The solution, in the opinion of Adv. Or, should be reversed: "A realistic minimum threshold should be set for the project's profitability rate for the project, and the improvement levy should be deducted from the gap between the minimum rate of profitability and the rate of profitability shown in the appraiser's opinion or in the zero report. Projects that are borderline in terms of profitability will not be solved, which will give entrepreneurs an incentive to promote projects in the 'difficult' areas. "
Regarding Kaminitz's comments on lowering the consent rate for urban regeneration projects, Adv. Orr says that "the problem of extortion is indeed a simple problem, but it is not the only problem. Therefore, lowering the consent threshold to 66% is not enough. After all, even after the necessary majority has been obtained, the landlords must file a lawsuit against the opposing landlords. Such a procedure may take many years and jam the project.
"The lowering of consent must therefore come with the establishment of clear legal principles and tests. As the principles become clearer, the legal proceedings will be shorter and in some cases completely avoided. In addition, it may be worthwhile to consider the special procedures for discussing claims under the Evacuation and Construction Law. Why in 2008, when it comes to leased evacuation claims. "
The secret is in collaboration
One of the main issues raised by the conference was the failure of the state to export urban renewal to the periphery. "As the state is unable to produce complementary land solutions and incentives for construction outside the demand areas, we are only tightening the growing gap between the center and the periphery," said Benny Dreyfus, director of the Ministry of Construction and Housing.
Dreyfus added, "The necessary solution is that some of the benefits of the improvement levy go to a municipal renewal fund and be transferred to non-economic peripheral projects. But should affect where there is a market failure. "
Israel Land Authority director Adiel Samaria said: "The main thing the authority should do in urban renewal is not to interfere. Beyond that, our ability to contribute to urban renewal is primarily about the complex issue of complementary land. We have a set of rules in this regard. Complementary will go to those who need it most and there will be no excuse for lowering the density. We made a decision two years ago on an issue approved by the Israel Lands Council and started allocating land for individual projects, but it is important to understand that this is a complex project. "
On the other hand, like many activists in the field, Adv. Or does not hang on to the idea of complementary land: "There is no doubt that as the owner of the vast majority of the land, the State of Israel is the one holding the solution and must work to promote urban renewal projects. However, the idea of complementary land is not a new one. As early as 2013, the Israel Lands Council made a decision to allow the addition of a "Completion Lot" with a tender exemption if the plan on one lot is not financially viable. There is also a PMI procedure on the subject published in 2018.
"In the end, this is another idea that in theory sounds good, but to date it has hardly been implemented and does not seem to be a real solution. The powers in urban renewal in Israel are divided between several government agencies: the Ministry of Construction and Housing, the Planning Director at the Ministry of Finance, the Chief of Staff and the Planning Institutions. .These are the bodies responsible for land development, allocation, planning and marketing, and are also the ones who can influence project promotion.These bodies need to work collaboratively, with full coordination and efficiency to promote real urban regeneration. In the meantime, unfortunately, this is not happening.