The company again demanded that the municipality promote the change in the zoning plan and obtain the approval of the Minister of the Interior, and according to the company, it did not receive any response.
- On July 16,2018, the company's counsel contacted the municipality in an attempt to change the designation of the land through the new zoning plan, in deviation from its winning of the tender, and announced that due to technical problems, it did not win the tender from the Ministry of Immigrant Absorption, and that the company was interested in continuing to promote the project on its own.
- On July 17,2019, the Municipality sent the company a notice of termination of the contract, on the grounds that the company had not won a tender by the Ministry of Immigrant Absorption for the construction of housing for elderly immigrants entitled to public housing in the city of Bat Yam, while in its tender proposal, the company noted that the protected housing it would establish would be intended for elderly immigrants who have a certificate of eligibility from the Ministry of Immigrant Absorption.
The municipality saw this as a reason to terminate the engagement with the company.
- The company appealed against this decision by the municipality and on December 29,2019, a judgment was issued that determined that there was no basis for the cancellation notice and the court recommended that the parties come to the matter and promote understandings in order to promote the project.
Signing a second addendum to the agreement dated November 5,2020
- On January 12,2020, the company wrote to the municipality in a letter to promote the renewal of the contract. On January 20,2020, the municipality demanded that the company submit data and materials in order to re-examine its decision to cancel the agreement. On January 21,2020, the company replied that there was no basis for the municipality's demands and that it was an internal matter. Ultimately, the company gave in to the municipality's demands and provided the data and materials, and hired the services of Mr. Dov Tzur in order to promote the project vis-à-vis the municipality. Dov Tzur conducted a process that lasted almost a year, during which the company was required to present an economic and business plan.
- On November 5,2020, about a year after the judgment was rendered, the parties entered into a "Second Addendum to the Development Agreement" agreement, in which it was agreed that the company would undertake the task of changing the zoning plan, and at the same time, the municipality committed to the company to invest maximum efforts in order to obtain approval for the change in the zoning plan as well as the approval of the Ministry of Interior. In addition, the deadline was extended and it was determined that the deadline for receiving approval for the change in the zoning plan would be at the end of 12 months from the date of signature, and the deadline for receiving the approval of the Minister of the Interior would be at the end of 18 months thereafter.
Cancellation of the Agreement
- About two months later, on January 13,2021, the company was first exposed, according to the company, to an email message dated January 10,2021, sent to the municipality by Adv. Einat Yirmiyahu of the Ministry of Interior's legal office, which shows, according to the company, that for years the municipality knew very well that the transaction would not be approved by the Minister of the Interior, even if the zoning plan was changed, and despite this, it presented the company with a false representation that the transaction would be approved by the Ministry of the Interior after the change in the zoning plan.
In the words of the email sent by Adv. Yirmiyahu from the Ministry of Interior to the Municipality on January 10,2021 (P/35): "After receiving the addendum to the agreement with V Equity from June 2017, which was first sent to me on December 30,2020, I do not understand on what basis the Municipality signed an addendum to the agreement with the company, after the Minister of the Interior did not approve the engagement with the company in the framework of the tender, as stated in Ms. Ravit Klepner's letter dated November 12,2016.... Why did the Municipality choose to hold it with the company and collect money from it?....