After the Tel Aviv municipality signed the plan for neighborhood 4 in Tel Aviv last week, the Tel Aviv District Planning and Building Commission today signed the plan and gave it final validity. It could result in the construction of more than 5,000 homes in Tel Aviv city center. The plan will be published in the records and become effective in the coming days. This approval marks the end of a process that took years and involved delay in implementation of National Outline Plan 38 in the relevant part of neighborhood 4.
The plan now provides the contractors, developers, and owners of old apartments with more certainty, but certainty about the rights in National Outline Plan 38 will now cause a new dispute about the betterment taxes applying to the contractors and developers, which will probably increase, and a real estate capital gains tax on apartment owners selling their apartments. Industry sources are concerned that while projects that have stalled can now go ahead, approval of the plan is also liable to thwart other projects.
One indication of this is the attitude of the Tel Aviv District Planning and Building Commission to today's approval of the plan for neighborhood 4. The commission's announcement said, "A survey conducted shows that the plan will facilitate the construction of 5,100 new housing units in the neighborhood, assuming utilization of only 50% of the full potential." In other words, the possibility of only half of the potential being realized is being taken into account in advance. This assumption is also connected to other problems with the urban renewal plans, which take so long to go forward and are dependent on many factors.
The neighborhood 4 plan applies to all of the buildings zoned for residences that were not designated for preservation under other plans. Neighborhood 4 covers 2,825 dunam (706.25 acres) between Bnei Dan Street and Rabbi Kosovsky Street on the north, Ibn Gvirol Street on the west, Shaul Hamelech Street on the south, and Ayalon Highway and Namir Road on the east. The areas along Ibn Gvirol Street are not included in this plan; a separate plan will be promoted for them.
The District Planning and Building Commission said today, "The plan encourages urban renewal and strengthens buildings in accordance with the principles established in National Outline Plan 38, while adapting them to the features of the existing fabric. It establishes rights and building regulations for new buildings and additional construction on existing buildings according to the size and location of the lot, as described in the documents for the plan. The UNESCO declaration and other regulations apply to the buildings in this area. The plan also replaces previous plans for additional construction applying to the neighborhood, thereby simplifying the information and licensing procedures. The plan will have a great influence on the design of the city's appearance in the coming decades, and emphasis has therefore been placed on preserving the existing character of the streets and the spirit of the place, while improving them by maintaining protected and planted spaces through more efficient use of underground space."
Tel Aviv District Planning and Building Commission chairperson Daniela Posek noted today after signing the plan, "The plan constitutes another part of the neighborhoods plan and ensures the renewal of the urban fabric of the Tel Aviv city center in accordance with National Outline Plan 38. The plan maintains balance by preserving the neighborhood's character on the one hand and offering of supply of high-quality housing units to tens of thousands of residents who will benefit from topnotch services and optimal access in the heart of the metropolis on the other."
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2018
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