The Tel Aviv-Jaffa Municipality will have to pay a massive NIS 34 million in compensation to the Maccabi sports organization over the city's failure to build a sports complex as promised next to the Reading power station, according to Yediot Tel Aviv. The city was ordered to make the pay-out after Maccabi demanded full compensation for the city's breach of an agreement between the sides.
According to the report, the agreement goes back to the year 2000, when the city promised to approve construction work on the sports complex within three years, or pay $10 million in compensation and a further NIS 20 million towards the construction. The city's local planning and construction committee did approve the plans within one year, but residents from neighboring areas objected before the district planning and construction committee, and approval ended up being delayed beyond the three-year deadline. In 2004, the Maccabi organization demanded the full compensation, totaling some NIS 60m. Eventually, both sides agreed to clarify the issue before an arbitrator.
The arbitrator, lawyer Ram Caspi, recently decided that the city should pay Maccabi NIS 34m. Following the decision, the city's financial committee met and decided to make the payment in just one installment. At least one councilor, Mordechai Virshubski, said the explanation for the huge payment was "not satisfactory" and he would raise the matter in council.
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