Jerusalem Residents Sue 10 Holdout Neighbors Over Redevelopment Project

Residents of a "pinui-binui" (evacuation-construction) redevelopment project in Jerusalem's Katamon neighborhood are suing ten "refusenik" neighbors, demanding compensation for the project's delay. The lawsuit, filed in the Jerusalem District Court, concerns a complex on San Martin and Bar Yochai streets that currently comprises five old buildings with 119 apartments. The project, spearheaded by Ken HaTzur and Shikun & Binui, aims to replace these with two towers containing 491 apartments, public spaces, and parking. Participating apartment owners will receive upgrades including elevators, parking, larger living spaces with bomb shelters, balconies, and storage.

While 109 apartment owners, representing 91% of the project, have agreed, ten owners have refused to participate. This refusal is hindering the project, as "pinui-binui" typically requires 66% consent. The plaintiffs argue that the existing buildings are in poor condition, lack earthquake reinforcement, and are not missile-proof. They contend the holdouts' refusal is not based on legitimate concerns but on demands for excessive benefits.

The lawsuit seeks either financial compensation from the refuseniks for the damages incurred by the other residents or the court's intervention to force the project's implementation. An appraisal commissioned by the plaintiffs estimated the damage caused by each refusenik at 800,000 shekels, totaling approximately 80 million shekels. However, due to court fee regulations, the lawsuit is filed for 10 million shekels, implying each refusenik would pay one million shekels if ordered to compensate.

Legal representatives for the plaintiffs stated that the holdouts' refusal is unreasonable and stems from personal demands for better terms. The court has the option to order the refuseniks to pay compensation or to appoint a representative to sign on their behalf, thereby compelling the project's advancement. This case highlights a significant number of holdouts within a single redevelopment initiative.