Urban renewal is one of the key growth engines of Israel’s real-estate sector, and given the scarcity of available land in city centers and the aging of buildings and neighborhoods, will gain even more importance in the years to come. Yigal Arnon & Co. has, for a long time now, been developing integrative capabilities with a focus on urban renewal projects. These deals are complex by their very nature. Firstly, they involve different legal fields: real estate, planning and building, tax, banking and finance, and litigation before the courts and various other tribunals; Secondly, these are multi-party transactions, with each party having its own, special financial and other interests; And thirdly, each project has its own attributes and the business and legal solution must be tailored anew for each one. Our familiarity with the financial and legal concerns and interests of the key players in the urban renewal scene, e.g., the needs and concerns of home owners; developer’s limitations and constraints; regulatory planning requirements; requirements of financing banks; and the complex tax arrangements – enables us to lay down practical and efficient ways to obtain our clients’ needs. The teams dedicated to urban renewal have a long and successful track record with transaction planning, representation vis-à-vis the planning authorities, tax authorities and the banks. The firm also assisted in forming the binding regulatory framework for bank financing of Tama 38 renewal projects. Although most of our clients are developers and contractors, we have also represented many home owners in urban renewal projects. A few examples of urban renewal projects our firm has handled from start to finish are provided below.

The list below describes some of the urban renewal projects handled by our firm from start to finish:

  • Representation of contracts in many 'Pinuy Binuy'  projects across the country, including thousands of housing units;
  • Representation of developers, contractors and home owners in dozens of Tama 38 deals in Tel Aviv, Ramat Gan, Givatayim, Hod Hasharon, Petah Tikva, Bat Yam, Ramat Hasharon and Jerusalem, in which buildings were reinforced to withstand earthquakes, apartments were renovated and new ones were added. These projects include hundreds of housing units. Some of these projects are still underway, and others have already been completed, and the new apartments were registered and sold.
  • Assistance to the Housing, Community and Law Clinic at the Tel Aviv University’s Faculty of Law in the renewal project that the Clinic conducts together with other parties on behalf of the Yafo Gimel neighborhood in Jaffa. The project includes six residential buildings, and is aimed at renewing the compound, reinforcing the buildings against earthquakes, repairing infrastructure and positioning the project as a good place for students to live in.
  • Representation of developers, home owners and contractors in dozens of Tama 38 transactions in Ramat Gan, Tel Aviv, Givatayim, Hod Hahsaron, Petah Tikva and Jerusalem, including hundreds of housing units, in which existing buildings were demolished and new ones built in their place. Some of these projects are still underway, and others have already been completed, and the new apartments were delivered to residents and buyers.
  • Representation of developers vis-à-vis the banks in financing agreements for Tama 38 projects (both in additional construction programs and in demolish-and-rebuild programs), and in 'Pinui Binui' financing projects, including preparation of the legal and financial model with any one of the large Israeli banks.
  • Drafting of financing agreements for 'Tama 38' projects with non-bank lenders.

Since urban renewal is a relatively new area, many lawyers in Israel have experience in drafting the contracts, but not with implementing them, especially not in the context of large-scale projects. Our firm has been involved in several large-scale projects that have already entered into the construction stage. This hands-on experience is invaluable for the negotiation and drafting stages as well.

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