This is in addition to tens of millions of shekels.
This is a plot of land in Netanya on which a shopping center is located, known as the “Alexandra Center,” situated in the New Industrial Zone of Netanya, on the main street Giborei Israel. This complex includes restaurants, cinemas, shops, and commercial premises.
In the 1990s, the Sami Shimon group received land exempted from a tender for industrial use and thus created a shopping center. After long debates with the Israeli Land Authority, the group agreed to pay tens of millions of shekels and return a plot of land with potential building rights of 100 thousand square meters.
The long-standing conflict between the state and the Sami Shimon group over the land in Netanya is now over. “Cash and Carry,” a company owned by the Sami Shimon group, will pay tens of millions of shekels to the Israeli Land Authority and return an area of 9 dunams where the building rights total 100 thousand square meters in the industrial zone of Netanya, Poleg.
This is a plot of land with a total area of 33 dunams that the Sami Shimon group received, exempted from a tender in March 1993, for a lease period of 49 years, in order to establish an industrial and craft structure. The exemption was granted in accordance with a special resolution of the Israeli Land Council, after Shimon convinced the state and the Minister of Housing Ariel Sharon that he intended to bring to Israel the Cash & Carry chain of stores, which provides wholesale food service offerings.
In the documents signed with the Cash and Carry company, it was noted that the monetary compensation for the land was approximately 6.11 million, representing the amount of reduced annual fees for the lease. The company also knows that if various uses are added to the objectives of the allocation, with the municipality’s agreement, the Israeli Land Authority will review the matter and if it turns out that there are additional rights, the contractors will pay the differences in value.
Cash and Carry, founded in 2007, established a shopping center called the “Alexandra Center” on part of the area located on Giborei Israel. This includes restaurants, cinemas, shops, and commercial premises. As a result, the municipality of Netanya took legal action against the developers because the use of the construction land contrary to the city’s zoning plan began to increase.
According to the agreement concluded now, “Cash and Carry must immediately return 9 dunams of land,” including parking basements built without compensation for the built area. Furthermore, an eviction order against the company and to cease any use that is incompatible with the purpose of the contract and the demolition of buildings constructed without state authorization.
Moreover, the agreement stipulates that Cash & Carry will pay 91% of the permit fees. Payment intended to compensate the Israeli Land Authority for the differences in land value between the contractual rights and the rights according to the city’s construction plan. From this amount, the payment of the transformation tax (Etel Achbakha) payable by Cash & Carry will be deducted. Additionally, the company will pay usage fees to the Israeli Land Authority for any additional use made in the area since 2003.
