Calcalist, Dotan Levy, 15.07.2020

The first case in which an argument regarding damage to the real estate industry as a direct result of the corona crisis comes to court. Entrepreneurs of the Bat Yam Country Complex filed an administrative petition with the District Court, through attorneys Yuval Galon and Little Bar Sheshet of Shavit, Brown, Galon, Tzin, Vitkon & Co. - according to which the municipality continues to insist on increasing the office space in the complex. Offices and the need for them have diminished. The developers are demanding that the municipality re-examine the deal based on an expert opinion; The position of the district committee that there is no need for additional offices in the district; And the transition to work from home in the Corona Age. According to the agreement with the developers, the project will include 70% business and 30% housing, but now the municipality requires 80% business and a residence permit, in order to increase its income from property taxes.

"It is now known that the entire Corona crisis dictates an excess supply of office space and more demand for residential space," the petition said. According to the developers, if the municipality adheres to the agreement as planned, it will generate a net annual income of 25% of its built-in annual budget deficit, and will put about NIS 24 million a year into its coffers. It was further argued that increasing the office component could result in the project not being implemented at all.

City officials told Calcalist that the petition was intended to intimidate the new management: "They can threaten as much as they want, but the period they celebrated at the expense of the public is over. "All those free eaters who caused the city to collapse economically want to continue taking public land." The municipality stated: "The company has submitted plans that deviate from the agreement and do not comply with the municipality's current policy, which is intended to improve the well-being of the residents."