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Civil Case (Tel Aviv) 27862-07-22 V Equity Ltd. v. Bat Yam Municipality - part 21

October 29, 2026
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  1. Following the signing, on August 15,2017, of the first addendum to the agreement, a meeting was held on December 6,2017, in the office of the then Deputy Mayor, in which it was agreed that the company would advance the update of the measurement of the land so that the zoning plan would be deposited as soon as possible, and the process of approving the zoning plan would be completed within a few months (see summary of the meeting of December 7,2017 - (P/15)).

In the summary document of the meeting, it was written and concluded that: "In parallel with the deposit of the zoning plan, the municipality will contact the Ministry of the Interior in order to obtain the approval of the Minister of the Interior for a tender, a process that may take several months to get to know us, so that things will happen in parallel with the period of deposit and the completion of the zoning plan."

  1. It should be noted that at that time, the municipality had before it a letter from the Ministry of Interior dated November 2,2016 regarding the non-approval of the agreement in question, as well as a letter from the Ministry of the Interior dated February 1,2017 regarding the non-approval of an agreement in the Oumarta

Above all, and to the extent that there was doubt about the position of the Ministry of Interior, at that time the municipality had a fresh letter from the Ministry of Interior, dated November 20,2017, regarding the non-approval of the supermatist agreement, as detailed below:

Suprematist Tender

  1. In the case of "Supramatister", there was a public tender No. 21/2015 for the construction and operation of a soccer stadium, a sports and commercial center, where, in accordance with the terms of this tender, the winning company will plan, construct and operate the stadium and the yielding areas for a period of 24 years and 11 months, and then transfer the management of the stadium and the yielding areas to the Bat Yam Municipality.
  2. The winning bid in that tender (and the only one that was submitted) was submitted by Supermatist Art Management Ltd. (hereinafter: "Supermatist"), and included a commitment to invest ILS 800 million.  In accordance with the terms of this tender, the Municipality is not entitled to any monetary consideration from the transaction (except for mandatory payments).  The consideration in fact is the receipt of the stadium and the yielding areas at the end of 24 years and 11 months.  After Supermatist won the tender, the Municipality approached the Minister of the Interior to approve the engagement between the parties, just as happened in our case.
  3. Here, too, the Ministry of the Interior (Adv. Carmit Fenton) sent a letter dated November 20,2017 to Adv. Cohen, in which he clarified that it does not approve the tender, inter alia, because it does not comply with the planning situation applicable to the land. In this letter, it was noted that the Ministry of the Interior had commented to the municipality several times in the past that it must publish tenders that correspond to the current planning situation, and that in the past, exceptional approvals were granted only against the background of special and exceptional circumstances and did not constitute anything at all.  (See Appendix 2 to the Company's Summaries)

Thus, on page 5 of his letter, the Ministry of Interior wrote poignant statements regarding the municipality's systematic conduct and the warnings given to it by the Ministry of Interior on the matter, as follows:

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