Court Again Cancels Transfer of Public Building to Chabad in Rehovot

The Dispute Over the Municipal Building

The association has used the building at 4 Har Zion Street since 2012 and converted it into a synagogue, even though the property was originally intended for early-childhood needs. Neighborhood residents petitioned against the transfer of the property, arguing that the municipality had not followed a proper procedure, had not assessed the population’s needs, and had not provided a lawful opportunity to submit objections. This is already the residents’ third petition in this dispute to be granted by the court.

Why the Transfer Was Canceled Again

Following the previous judgments, the municipality changed its planning scheme: the Dutch Rehovot neighborhood was separated from the adjacent Ibn Gabirol neighborhood, making it possible to claim a shortage of synagogues. Judge Shmuel Bornstein ruled that such a change was insufficient to validate the transfer of the building to Chabad. In his view, municipal land must not be allocated, either temporarily or permanently, unless the prescribed procedure for allocating public assets has been followed.

Vacating the Building and Collecting Payments

The court ordered the transfer of the building canceled and required the association to vacate it within 60 days. Within 30 days, the municipality must make a transparent and reviewable decision regarding usage fees for the property and municipal property tax for the elapsed period. The court also pointed to the need to collect usage fees from 2012 onward, including electricity and water expenses.

Legal Costs and the Amount Owed

The Rehovot Municipality will pay the residents who filed the petition 40,000 shekels in legal costs, and the Chabad nonprofit association will pay an additional 20,000 shekels. The final amount of the debt is not specified in the source. According to an expert opinion commissioned by the residents, the nominal usage fees for the building alone in 2012–2022 could have exceeded one million shekels, excluding municipal property tax, electricity, and water.

The Municipality’s Duties

The court emphasized that the municipality is a trustee of public assets and may not treat them as a private owner would. Making public land available free of charge requires legal authority and reasoning grounded in administrative law, and a longstanding informal practice does not in itself constitute a substitute for them. Waiving payments owed to the municipality reduces the funds in the municipal treasury and may shift the financial burden onto residents.

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