Metro Compensation Committee Rules in Favor of Landowners in Rishon LeZion

A compensation committee for Israel's largest transportation project, the metro, has ruled in favor of private landowners in the southern Rishon LeZion area, rejecting the stance of the local planning committee and NTA (Urban Transport Networks). The committee determined that the land's value prior to the metro project's approval should consider its potential under a regional master plan designating it for metropolitan recreational areas, not solely its agricultural value as argued by NTA and the local planning body.

This decision impacts 31 compensation claims totaling approximately NIS 358.5 million, filed after the approval of a metro line section in June 2022 that rezoned the land for "railway operation purposes." The disputed area, known as the "Depot complex," spans about 299 dunams (74 acres), with the claims covering roughly 186 dunams (46 acres).

The core of the dispute centered on the land's value before the metro plan. While a 1970 local plan designated the land for agriculture, a 2003 regional plan (TAMA 21/3) included it within a metropolitan recreational zone, allowing for various uses beyond agriculture, such as sports facilities, hospitality, and open spaces. NTA and the local committee argued TAMA 21/3 did not grant significant development rights, valuing the land at only NIS 80 per square meter. The committee, however, acknowledged that TAMA 21/3 altered the land's character and potential uses, necessitating its consideration in compensation calculations.

While the ruling is a significant win for landowners, it does not guarantee compensation or its amount. The committee has appointed an independent appraiser to determine the land's value before and after the metro plan's approval, assess any value decrease, and evaluate the impact of comparative sales. The appraiser will also consider the land's value post-rezoning for metro operations, a figure NTA estimated at NIS 2,200 per square meter, but which remains to be professionally determined.

Lawyer Zvi Shuv, representing the landowners, hailed the decision as a "critical ray of light," criticizing past practices of "overbearing expropriation mechanisms" that allegedly undervalued land. He stated the ruling sets a significant precedent for other major infrastructure projects in Israel, potentially impacting compensation for landowners nationwide.