The dispute relates to the conduct of the municipality, which, according to the plaintiffs, was improper and lacking in good faith. The plaintiffs claim that the municipality misled them, made false representations, enriched themselves at their expense, violated the duty of administrative fairness, and fundamentally violated the agreement.
The main sequence of events
- The Bat Yam Municipality identified a vital need for the construction of a housing cluster intended for the elderly and published a tender on this subject. The designation of the land in the tender was for the construction of public buildings and educational institutions, with the approved plan applicable to them being B/Mac/410/1.
- On February 23,2016, the Municipality published a tender for the development and lease of part of the Zoning Plan 63 plot with an area of approximately 1,7000 square meters (hereinafter: "the Land"), for the purpose of establishing and operating a protected housing home on the land. (hereinafter: " The Tender") [P/3].
In clause 1.5.1 of the tender terms, three suspension conditions were set (hereinafter: the "suspension conditions"), which only when they are fulfilled will the engagement between the municipality and the entity that will win the tender be validated:
- Obtaining approval for a change in the zoning plan, in a way that will enable the establishment of a sheltered housing home. .
- Approval of the engagement between the company and the municipality by the Bat Yam Municipal Council;
- The Ottoman Settlement [Old Version] 1916 Approval of the Engagement by the Minister of the Interior, in accordance with Section 188 of the Municipalities Ordinance [New Version];
12-34-56-78 Chekhov v. State of Israel, P.D. 51 (2)
These suspension conditions were determined, since at the time of publication of the tender, the zoning plan that applied to the land was, as aforesaid, for the designation of an educational campus and sports buildings, and not for a housing cluster for the elderly (sheltered housing), so that a change in the zoning plan was required in order to enable the use of the land for protected housing (clause 2.2.2 of the tender).