Court Rejects State's Low Valuation of Metro Depot Land in Rishon LeZion

A compensation committee has rejected the Israeli state's attempt to significantly lower the assessed value of land designated for a Metro system depot in southern Rishon LeZion. Property owners filed 31 claims totaling approximately NIS 358.5 million, arguing the land's value diminished due to the Metro project. The state and local authorities contended that the land should be valued solely as agricultural land, at about NIS 80 per square meter, which would result in much lower compensation.

However, the compensation committee for the Metro project ruled on September 3 that the land's valuation must consider its designation as a metropolitan recreational area, not just agricultural use. This decision was made within the context of 31 claims filed after the approval of a national plan in June 2022, which allocates about 299 dunams for the Metro depot. The land is slated for expropriation, and owners have already received notices.

The claims cover approximately 185,700 square meters, or 62% of the depot area, with owners seeking an average of about NIS 1,930 per square meter. The state's position would have valued the entire area at only NIS 14.9 million. The core dispute centered on the land's value prior to the Metro plan's approval.

Landowners argued that since 2003, the area was designated a metropolitan recreational zone (MRZ), allowing for uses beyond agriculture and limited development potential. The committee agreed that this prior designation changed the land's status and potential, meaning its value should not be assessed solely as agricultural land. While the committee acknowledged the MRZ designation, it rejected claims based on a subsequent, unapproved plan that had earmarked the area for urban development.

Despite the committee's ruling in favor of considering the MRZ designation, it did not award the full amounts claimed. The exact compensation will be determined by an appointed advisory appraiser, selected by the Land Appraisers Council. This appraiser will assess the land's value before and after the Metro plan's impact, considering comparable transactions and potential development. The appraiser's findings will be open to objections from both parties within 45 days. Lawyers representing the landowners expressed satisfaction with the ruling, calling it a critical precedent that prevents the state from offering "ridiculous" compensation, though they noted disappointment that potential for residential development was not fully recognized.