Azrieli Group Sues Holon Municipality for 6.5 Million Shekels Over Parking Dispute
Azrieli Group companies sued the Holon Municipality for 6.5 million shekels at the Tel Aviv District Court over a dispute concerning the parking lot adjacent to the Azrieli Mall.
Three companies belonging to the Azrieli Group have filed a lawsuit totaling approximately 6.5 million shekels at the Tel Aviv District Court against the Holon Municipality, alleging arbitrary conduct, foot-dragging, and the abuse of regulatory authority in negotiations over the operation of the parking lot adjacent to the Azrieli Mall in Holon. The plaintiffs are Kanit HaShalom Investments, Gemel Tshuah Investments, and Kanyon Holon Management and Maintenance, which hold the rights to and operate the Holon facility. They are represented by attorneys Zohar Lande, Shahar Rothschild, and Shani Tzur from the Barnea Jaffa Lande & Co. law firm.
According to the statement of claim, the Azrieli Group has operated the Holon shopping center on Golda Meir Street for over 25 years. The adjacent parking lot, serving visitors and local residents, was established in 1997 on municipal land owned by the Holon Municipality and has been developed and managed by the Azrieli companies ever since. Under an agreement signed that year, the lot operated for decades as a free public parking facility, with the companies bearing all operating expenses, including property taxes, security, cleaning, electricity, water, and general maintenance.
As the agreement approached its expiration, municipal officials asked the companies to formalize the continued operation of the lot. However, the lawsuit states that the municipality demanded not only that the companies cover all operating costs, but also begin paying user fees for the facility. The plaintiffs indicated they would be willing to pay reasonable usage fees provided they could operate the parking lot as a paid facility, allowing them to charge drivers under a long-term agreement that would justify the investments required for the necessary infrastructure adjustments.
Negotiations and Allegations of Abuse of Power
Following these discussions, the parties entered into negotiations to formulate an agreement for paid parking operations. The lawsuit alleges that during the talks, the municipality exploited the symbiotic relationship between the shopping center and the parking facility to exert pressure and extract excessive payments. The plaintiffs accuse the municipality of bad faith and arbitrary conduct, asserting that they paid substantial sums under protest while local authorities dangled the prospect of a long-term arrangement.
In September, Dana Azrieli, CEO of the Azrieli Group, reached out directly to Holon Mayor Shay Keinan in an effort to resolve the dispute. Although the mayor reportedly promised to review the matter, the municipality failed to respond to subsequent inquiries, leaving the companies with no alternative but to seek judicial intervention. A statement of defense has not yet been filed.
Response from the Holon Municipality
In response, the Holon Municipality issued a statement dismissing the legal action as a meritless lawsuit. The municipality stated that the lease agreement under which the Azrieli Group held the parking lot expired four years ago. Officials emphasized that the parking facility is a public asset belonging to the city's residents, and the Azrieli Group must pay for its commercial use, urging the company to withdraw its claims.
