Globes, Guy Nardi,  23.04.2021

Complementary land is a relatively new mechanism in the world of planning and real estate, designed to help solve the promotion of urban renewal projects that do not have enough building rights in their area to enable their economic feasibility. What does it mean? Otherwise, in practice, this hardly happens, mainly for reasons of bureaucracy.

Yaakov Quint, the new director general of the Israel Land Authority, announced yesterday that he intends to work to change the system and create a mechanism that will replace the compensation of the supplementary land with monetary consideration.

Real estate appraiser Motti Zaid, who collaborates with the planning director and RMI on many projects, explains the failure of the complementary land method: The appraisers who made their financial reports saw that the design did not meet the economic conditions. There is a situation where the state intervened and tried to create the economic idea by completing land that the state donates. It should be understood that this is a benefit and not a free giving. In practice it did not work and the state's giving was not reflected. "In the end, since the procedures are complex and a lot of calculations are needed, and the legal complexity of giving land that is outside the project, it is better to reach a state of monetary consideration for completion instead of supplementary land."

Quint clarifies: "The idea of ​​complementary land was born when they thought that instead of taking money out of pocket, they would give land because it does not cost anyone. I say it costs more - and it is also inefficient."

why is not it working?
"One reason is that once I have to seize this land for the benefit of entrepreneurs, it does not reach the required market speed. I delay marketing, and I need it to reach the end consumer, young couples or housing developers. A second reason is that the return is dichotomous. What can I give? One plot for one project, I can not split it.

"In economic changes, it can be more accurate, the return can be divided into more players. I can move from the center of the country to the periphery, from north to south. I maximize the return I receive and give to the project in Kiryat Ono, economic".

And when is that expected to happen?
"I try to create alternatives that do not depend on legislation. The king's way is to create a fund for urban renewal, like there is an open space fund. When one percent of the manager's change, between NIS 70-100 million, goes to it. I'm not sure I can try to paint changes, market and leave The money and distribute it. "

Is it possible to talk about a schedule?
”The schedule is set according to a policy that is bigger than us. If legislation could be promoted it would be easier for me to make statements. When you can not walk the King's Road you try to get around it. "If I can find some way around my thinking and in agreement with their mayors, the completion plots are intended, then we will try to do it first."