The Israel Land Authority (ILA), the Ministry of Finance and the Ministry of Construction and Housing have signed a NIS 3 billion roof agreement with the Haifa municipality for construction of 15,000 new housing units in the city, in addition to development, infrastructure construction, and public space. The Ministry of Finance today said that some of the agreement allocates hundreds of millions of shekels from the proceeds of land to be marketed for railway tunneling.
Under the roof agreement, the housing units will be built on 12 different sites around the city. Residential neighborhoods in the agreement include further development of the Neot Peres neighborhood at the south western approaches of the city, where 5,000 housing units will be constructed under the plan being considered for approval by the District Planning and Building Commission.
The agreement also involves sites designated for marketing in the framework of the buyer fixed price plan, including Kiryat Eliezer (505 housing units), the antennas neighborhood in Ramat Almogi (147 units), and another neighborhood on the Freud hillside (378 units). In the second stage, the state is expected to market additional lots for residential construction, some of which will become available only after the relevant IDF bases are removed. These include Hazit Hayam Ha'Ironit (500 housing units), which will be marketed after the land is vacated, Stella Maris (663 units), the Israel Navy training base in Bat Galim (1,300 units), Masa 7200 (1,600 units), Havat Mehalim in Kiryat Haim (3,300 units), and the railway station area in Bat Galim (3,500 units).
The state's NIS 3 billion investment in the roof agreement includes NIS 180 million for construction of public institutions in the new neighborhoods, NIS 140 million for upgrading infrastructure in old neighborhoods, NIS 125 million for construction of a new road connecting Neot Peres with the Carmel Range, NIS 90 million for developing Hazit Hayam Ha'Ironit, NIS 90 million for upgrading transportation infrastructure in the area of Neot Peres and Matat Junction (in addition to tens of millions of shekels more to be obtained from the Ministry of Transport for this purpose), over NIS 70 million for a sewage solution for the entire south of the city (including diversion of sewage to the purification institute at Nir Etzion), tens of millions of shekels for moving infrastructure, and NIS 20 million for building a promenade to complete the continuity of the beach promenade in Bat Galim.
As part of the roof agreement, agreements signed in 2013 by the state and the local authorities require the state to promote programs and finance infrastructure, public buildings, and perform other tasks, while the local authority is undertaking to promote construction in the city and issue building permits within a few months. Dozens of agreements have already been signed with the local authorities, including plans and potential for construction of over 300,000 new housing units and a budget in the billions of shekels.
In some cities, the roof agreement constitutes a significant addition to the existing housing units. A number of sources, including Ministry of the Interior director general Mordechay Cohen, have previously warned about additions on this scale, saying that some of the cities may not be ready for such construction with respect to their regular budget. Cohen also warned that it is possible that agreements of this type will cause the local authorities to collapse at a later stage if the state does not specifically deal with the matter as part of the roof agreements.
"The roof agreement is the realization of the mayor's vision for decades ahead. We have signed a great many agreements for hundreds of thousands of housing units, but here at home in Haifa is the most exciting one of all," Minister of Finance Moshe Kahlon said after the agreement was signed. "The roof agreements make sure that there will be schools waiting for the children and daycare centers waiting for babies, rather than the children and babies having to wait. The agreement does not concern only construction of new housing units; it addresses infrastructure development and renewal of old neighborhoods."
Minister of Construction and Housing General (res.) Yoav Galant, who also attended the signing ceremony, said, "We are signing today a significant roof agreement that will move forward Haifa, one of Israel's main cities, the capital of the north. The agreement will facilitate the city's development as the main municipal center of northern Israel. This agreement is a very important one that will enable the city to develop and absorb new residents."
Haifa Mayor Yona Yahav said at the ceremony, "This is a historic agreement, following three earlier agreements for the expansion of Hakishon Park, the municipal seaside project, and the lowering of the railway in the lower city. The current agreement ensures the city's continued development and growth as a metropolitan center. This is a real action for strengthening northern Israel."
ILA director Shimron Adiel said at the event, "The roof agreement is empowering and strengthening Haifa as an important metropolitan city, while making land for housing available for marketing."
Published by Globes [online], Israel Business News - www.globes-online.com - on March 20, 2018
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