The boundaries of Ward 3 are Yarakon Street in the west, Bogarshov, Ben Zion and Marmorak streets in the south, Ibn Gvirol in the east and Nahal Yarakon and the Yarkon Estuary in the north. The plan excludes Ibn Gvirol Street, the Cultural Hall stage complex and the adjacent plots to the west and south of Rabin Square. The program applies to all residential buildings that have not been designated for preservation in other programs.
1 Viewing the gallery
Eyal Tishel, CEO of Demari Galim. “The projects are marginal from an economic point of view”
(Yanai Alfasi)
A conversation with Eyal Tischel, CEO of Demari Galim, a subsidiary of Y.H. Demari, reinforces the feeling that even if the renewal momentum in District 3 does not stop, a new element of uncertainty will be added to the entrepreneurs. Demari Galim is currently leading about 30 projects Spot urban renewal (according to TMA 38/2) in various stages of construction in the Tel Aviv area, including about 1,000 apartments.
According to Tischel, the decision will have economic significance on existing projects in District 3: “When you come to the project in 2022, you have no real ability to understand what will happen when you go ahead with the project in 2026. When I submit a proposal for the project, there is still much that is hidden over the visible, also in the aspect of the improvement levy , considering that everyone sets a different value per square meter. One will say NIS 23,000, the other will say NIS 30,000. One will say that the determining date is the date on which the plan was approved in 2018, and the other the date of realization of the purchase. Everyone says a different number. It should be understood that these are small projects. Our entire nominal profit is on the order of NIS 5-10 million. This means that if the amount of the improvement levy is changed from NIS 1 million to NIS 3.5 million, the project is not profitable. This is the difference between doing a project or not. It’s not like a large evacuation-construction project, where the profit is NIS 100 million, and then the margins of the improvement levy will not finish the deal. It should be understood that even in these small projects there are no clear rules at all regarding how to calculate the improvement levy. Every change, no matter how small, is decisive whether it is a project that can be sustained or not.”
Tischel wants to make a distinction between planning certainty and the possibility of realizing the project in the future: “In Tel Aviv they say that the price of an apartment for sale embodies the future construction. But when I sell, do I know for sure that the developer will be able to sign the tenants? Can I know that the developer will get a building permit? I know for sure that at all Will there be a project in place? The fact that there is planning certainty does not mean that there really will be a project. Even so, the tenants have concerns, our building rights are constantly being reduced, and these projects are very borderline financially.
“I estimate that this will cause more delays for us. When you sell a plot of land in Kfar Saba on which a 100 square meter private house is built, you know the construction rights and price the transaction price, including the improvement levy. When you buy an apartment in District 3, you don’t even know that the project has come to fruition.”
He also laments that the appeals committee’s decision is limited to a small geographic area: “The decision made regarding District 3 says that apparently since there is an approved plan, an improvement levy can be collected. In my view, the decision is very specific and may refer to a few specific streets in Tel Aviv, but not to other places in the city , and certainly not to Herzliya or Hod Hasharon. Maybe the appeals committee will decide something else about District 4?”