The Government Authority for Urban Renewal is implementing the new supplementary land model with a budget of hundreds of millions of shekels, Israel Today has learned.
In the coming days, tenders will be published for evacuation-construction entrepreneurs who will submit proposals for urban renewal projects, which will receive funding from funds derived from the marketing of complementary land in the cities of Lod and Rehovot, and later also in Ashkelon.
The pilot for budgeting evacuation-construction projects with land marketing funds entered the realization phase, after successful land marketing in the cities of Lod and Rehovot, which brought in hundreds of millions of shekels that will now be used to subsidize the projects.
There is an economic incentive
The Government Authority for Urban Renewal calls on developers to submit proposals for state funds that will enable economic viability for evacuation-construction projects they seek to promote in the Kiryat Moshe neighborhood in Rehovot and in the city of Lod, in areas where there is no economic viability, to enable these projects, which will add thousands of new housing units.
Evacuation-construction projects are considered unprofitable in cities where apartment prices are relatively low.
On the other hand, in cities with high demand for housing, such as Tel Aviv, Ramat Gan and Givatayim, contractors have an economic incentive to participate in evacuation-construction projects because the value of additional building rights is high.
Bamberger, Photo: Bruno Shavit, GPO
"The state sold plots in Rehovot three weeks ago, and this money will be distributed for the purpose of implementing evacuation-construction projects in Rehovot. If once all the money went into the state coffers, now the same money is used to renovate old neighborhoods in Rehovot, like Kiryat Moshe. "Rebuilt," explains Elazar Bamberger, director general of the Government Authority for Urban Renewal, in an interview with Israel Today.
He said, "This is the first time that the state takes the land money it markets in a certain authority and distributes it back in the same city, in favor of realizing evacuation-construction complexes. Now it is happening in Lod and Rehovot, in two weeks in Ashkelon, "Increasing supply, and this plan is part of the same thing."
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