טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentBrand Shira
SubjectChanges in the Number and Attributes of Compensation Claims
for Decline in Land Values Caused by Planning
DepartmentDepartment of Architecture and Town Planning
Supervisor Professor Emeritus Rachelle Alterman
Full Thesis text - in Hebrew Full thesis text - Hebrew Version


Abstract

The Israel Planning & Building Law -1965 gives injured property owners the right to claim compensation for damages related to planning.  The purpose of this arrangement is to minimize damages caused to landowners resulting from the approval of plans.

In the latter 1980'a Alterman and Naim[1] made a comprehensive empirical investigation of compensation claims, and chose the Central District as their case study. 

Since then, far-reaching changes have occurred in the law related to the compensation mechanism.  Another fundamental change occurred in the interpretation given by the courts, especially the Supreme Court.

In order to be able to compare our findings with those of Alterman and Naim, we too selected the Central District as our case study. We investigated the situation in the decade following the earlier study, covering the years 1993 and 2003.

The findings of this study point to a dramatic change that has occurred in compensatory claims for planning damages during the last decade.  We herein briefly note the principal changes:

During the 1990s, tremendous growth occurred in the number of claims that were filed for compensation.  The number of claims rose by a factor of 10 during the period covered by the new study.

With the establishment of the appeals board, the rate of filings for claims in the Central District increased by a factor of 2.5.

A significant change has occurred in the principal grounds for claims.  While in the 1980s, the principal grounds for claims (96%) were direct damages, direct damages constituted only two thirds of the claims filed in the 1990s. 

A new and significant trend was found in the issue of the participation of an indemnifying body in the process. Most of the claims related to infrastructure planning had an indemnifying body.  Another important finding was a clear relationship between the existence of an indemnifying body and the conclusion of the process with compensation for the claimant.

A great change occurred in the rate of claims in which the claimant was awarded compensation - 55.5% of the claims ended with compensation for the claimant[2].Another interesting finding is that one-third of the claims discussed at the appeals board were concluded by agreement. With the establishment of appeals boards, the administrative process lengthened considerably

. Many processes, statutory, legal, economic and social, have contributed to the increase in claims for compensation submitted as a result of the approval of plans.  This is a phenomenon with great impact on planning and the planning system in Israel.





[1]     Alterman, R., Naim, A. (1992) Compensation for Reduction in Land Value, The Center for City and Regional Studies, Technion Institute of Technology, Haifa.

[2] While only 18% of the claims concluded with compensation for the claimant in the 1980s according to the study by Alterman and Naim