Urban renewal is one of the primary growth engines of Israel’s real estate sector. Given the scarcity of available land in city centers, as well as the aging of buildings and neighborhoods, these projects will become even more important in future years.

Yigal Arnon & Co. has the multifaceted expertise required in urban renewal matters, which are complex by their very nature. First, they involve real estate law, planning and building issues, tax matters, banking and finance law, and litigation. Second, they are multi-party transactions, with each party having its own financial and other interests. Third, each project has its own attributes and requires solutions tailored specifically to them.

We understand the financial and legal concerns and interests of key players in urban renewal deals. We also have a long and successful track record with transaction planning, and in representing clients in discussions with planning authorities, tax authorities and banks. In fact, Yigal Arnon & Co. assisted in forming the regulatory framework for bank financing of Tama 38 renewal projects.

Although most of our clients are developers and contractors, we also represent many homeowners in regard to urban renewal projects.

Representative Matters

Yigal Arnon & Co. is a leader in urban renewal law. We:

• Assist the Housing, Community and Law Clinic at the Tel Aviv University’s Faculty of Law in the renewal project that the clinic conducts together on behalf of the Yafo Gimel neighborhood in Jaffa; the project, which includes six residential buildings, is aimed at renewing the compound, reinforcing the buildings against earthquakes, repairing infrastructure and positioning the project as a good place for students to live in
• Represent developers, homeowners and contractors in dozens of Tama 38 transactions in Ramat Gan, Tel Aviv, Givatayim, Hod Hahsaron, Petah Tikva and Jerusalem—including hundreds of housing units—in which existing buildings were demolished and new ones built
• Represent developers in financing agreements with major Israeli banks for Tama 38 projects (in additional construction programs and in demolish-and-rebuild programs), and in 'Pinui Binui' financing projects
• Draft financing agreements for 'Tama 38' projects with non-bank lenders

Since urban renewal is a relatively new area, many lawyers in Israel have experience in drafting the contracts but not implementing them—especially not in regard to large-scale projects. Yigal Arnon & Co. has invaluable hands-on experience, having been involved in several projects where construction has already begun.