Israeli Supreme Court Upholds $11 Million Betterment Levy on Landowners

Private landowners in Tel Aviv's Kikar HaMedina will pay a betterment levy of NIS 45 million, according to a final ruling by Supreme Court Justice Yael Vilner. She rejected the landowners' request to appeal a district court decision on the matter. The dispute stemmed from significant changes to the area's building plan. An original 2000 plan envisioned three 25-story residential towers with commercial space and an underground tunnel. By 2013, a revised plan increased tower height to 40 stories, eliminated commercial space and the tunnel, and expanded service areas from 24,000 to 30,000 square meters. The local planning committee initially demanded a NIS 135 million levy. The landowners appealed, arguing the revised plan devalued their property and delayed construction. An appeals committee reduced the levy to NIS 45 million, accepting a consultant's assessment that considered the tunnel's cancellation and determined service areas were not eligible for exemption. Both parties appealed to the district court, which upheld the appeals committee's decision. The landowners then sought to appeal to the Supreme Court, citing an "exceptional legal question" regarding their eligibility for service areas under the previous plan. Justice Vilner denied the appeal, stating such "third-round" appeals are granted sparingly and that this case was rooted in its specific facts rather than a broad legal principle. The landowners were ordered to pay NIS 5,000 in expenses.