Jerusalem Residents Sue 10 Holdout Neighbors Over Delayed Redevelopment Project

A group of Jerusalem residents involved in a "pinui binui" (evacuation-reconstruction) project are suing ten of their neighbors who are refusing to vacate their apartments, seeking to either advance the project or receive financial compensation. The lawsuit, filed in the Jerusalem District Court, concerns a complex located on San Martin and Bar Yochai streets in the Katamon neighborhood. The existing site features five old buildings with a total of 119 apartments.

Out of 119 apartment owners, 109, representing 91% of the project, have agreed to the redevelopment. The project, which began its agreement phase with developers Ken HaTzur and Shikun & Binui in 2020 and concluded in March 2022, plans to construct two towers with 491 apartments, public spaces, and a parking lot. Participating residents are set to receive apartment expansions including an elevator, parking, an additional 25 square meters (including a safe room), a 10-square-meter balcony, and a storage unit.

While a 66% majority is typically required for such projects, ten holdout owners are preventing its progress. The lawsuit is a standard procedure in such cases, where the court will determine if the refusal is reasonable. If deemed unreasonable, the court can order the holdouts to pay compensation for damages to other residents or force the project's implementation by appointing a signatory on their behalf.

An appraiser hired by the plaintiffs estimated the damage per apartment at NIS 800,000, totaling approximately NIS 80 million. Due to court fees, the lawsuit was filed for NIS 10 million, but if compensation is awarded, each holdout could be liable for NIS 1 million.

The plaintiffs, represented by attorneys Ziv Groman and Lilach Zilcha, argue that the current buildings are in poor condition, lack proper earthquake reinforcement, and are not missile-proof. They also claim the deal significantly benefits the holdouts, whose refusal stems from demands for excessive benefits and personal improvements not justified or offered to others, such as additional space for illegal construction, two parking spots instead of one, exclusive use of a shared roof, and compensation for roof repairs.