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Ongoing Story· Day 25

Gary Barnett's Jerusalem Land Deal Faces Legal Challenge

2 developments

NEWSru IsraelPolitics

Israel's High Court Criticizes Jewish National Fund Over Land Dispute

Translated & summarized from NEWSru Israel by baba

CommunityNeutral tone

Russian · 2 newsrooms covering

Israel's Supreme Court criticized the Jewish National Fund (JNF) on October 28 for delaying negotiations over disputed land in Jerusalem's Talbiya neighborhood. Hundreds of apartment owners fear losing their property rights as leases expire. The court will order the JNF and Extell, the current land owner, to report on their stalled talks. The judges indicated they would set deadlines for the negotiations, which have lasted years without resolution.

The story in 5 lines · by baba

  • Israel's Supreme Court criticized the JNF for delaying negotiations over disputed Jerusalem land.
  • Hundreds of apartment owners face losing property rights as leases expire in 25-30 years.
  • The court will order the JNF and Extell to report on their stalled talks by a set deadline.
  • The land dispute involves leases originally granted by the Greek Patriarchate.
  • Extell proposes an urban renewal solution offering residents ownership or long-term leases.

Israel's Supreme Court, known as the High Court of Justice (BAGATS), on Wednesday, October 28, held its first hearing on a petition filed by hundreds of apartment owners in Jerusalem's Talbiya neighborhood. The residents are protesting against the Jewish National Fund (JNF), also known as KKL. Presiding Judge Dafna Barak-Erez stated that the court would compel the JNF and the development company Extell to report on the progress of their negotiations.

The judges indicated an intention to set deadlines for these stalled negotiations, which have been ongoing for years without resolution. The dispute concerns land leased long-term by the Greek Patriarchate to the JNF, which then subleased it to developers, apartment owners, organizations, and hotels. The Patriarchate sold the land to businessmen a decade ago, and it is now owned by Extell, a company backed by five American Jewish investors, including Gary Barnett.

Extell aims to develop the properties but requires an agreement with the JNF and sub-lessees. Approximately 900 apartment leases are set to expire in 25 to 30 years, putting residents at risk of losing their property rights. This uncertainty has caused apartment values to decline in the upscale Jerusalem neighborhood, hindering sales.

The petitioners are demanding that the JNF resolve the issue, noting that their lease agreements allow for renewal at a low rate for another 99 years. The JNF had requested the petition's dismissal, arguing it was a commercial dispute outside the court's purview. However, the judges sharply criticized the JNF for delaying a solution.

Barak-Erez agreed with the petitioners that the lands are of public, not private, significance, emphasizing the state's expected role in resolution. An Extell representative presented a urban renewal solution offering residents full ownership or long-term leases, contingent on JNF approval. The JNF representative was unable to provide an update on negotiations with Extell but did not object to the court's demand for a report.

NEWSru IsraelOther · Tel Aviv

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