The Iranian missile accelerated the TAMA: The unusual story of the building in Tel Aviv
After a missile strike damaged a Tel Aviv building, residents faced bureaucratic chaos. Lawyers successfully resolved the conflict between renovation compensation and the TAMA 38/2 demolition plans.
A demolition ceremony is an especially emotional occasion for residents of an urban renewal project. The demolition heralds the beginning of a new path; the project they have worked on for many long years is underway and is expected to change their lives. The 11 apartment owners in the building at 16 Louis Marshall Street in Tel Aviv were also preparing for such a ceremony. The permit for the project had already been granted after many years of bureaucracy, and they were moments away from coordinating the date of the ceremony.
However, on the morning of March 24, 2026, during Operation 'Roar of the Lion', a missile hit near the building and severely damaged it. None of the residents were injured, but as a result of the impact, the building remained in a difficult condition and was not fit for habitation. The residents were evacuated to hotels.
The building at 16 Louis Marshall was one of four structures including 54 apartments that were already moments away from the start of a TAMA 38/2 project. The TAMA agreement was signed in July 2019, and the building permit for the construction of 86 housing units was received in June 2024. The project was promoted by the company 'Binyanei HaIr HaLevana' and later 'Ofer Investments'. The apartment owners are expected to receive an addition of 9 to 14 square meters for each apartment, a sun balcony, parking, and a storage room.
While building number 16 was severely damaged, the other structures that are part of the project (the buildings at 10, 12, 14 Louis Marshall) suffered blast damage, and after point repairs, the residents returned to live in them. The impact, on the eve of the project, created great confusion and raised concerns about potential delays.
'The project received permits in 2024, but we were also waiting for the permits for buildings 10-12 that joined the project later. When the missile hit the building, the logic was that it would be for demolition, but then we discovered that from the perspective of the Tel Aviv Municipality, it is defined as a building for renovation, even though we already had a permit,' said Adv. Einat Shaked, partner at the 'Yahav & Co.' firm, representing the building's residents.
The definition of the building as a structure intended for renovation exposed the gap between the state's compensation mechanisms and the complex reality of urban renewal projects. Shaked and her colleagues had to create a unique legal and tax framework.
'We understood that there was a problem and that one authority does not know what is happening in another. Some of the apartment owners told us that they submitted claims to the Property Tax and a renovation was approved for them. This created a lot of confusion. On one hand, they were told, you have damage and this is the process. On the other hand, we told them to stop,' Shaked explained.
Following meetings with Property Tax personnel and Tel Aviv Municipality officials, the renovation approvals were canceled. The Tax Authority froze all approvals for the building to prevent unnecessary repairs, as the structure is slated for demolition.
During the evacuation phase, another obstacle emerged due to gaps between the rent payments from the state and the developer. To ensure a smooth transition, the evacuation notice period was reduced from 90 to 45 days.
'The project was at the top of our priorities. We worked fast, and the schedule was not damaged; perhaps it even advanced. Now we are waiting for the demolition ceremony of the remaining structures, which will likely take place in October, and immediately after that, the project will begin,' she concluded.
