MUNICIPALITY APPROVAL PUTS SHEPHERD HOTEL ONE STEP

C O N F I D E N T I A L JERUSALEM 001151 SIPDIS NEA FOR FRONT OFFICE AND IPA; NSC FOR SHAPIRO/KUMAR; JOINT STAFF FOR LTGEN SELVA E.O. 12958: DECL: 07/05/2019 TAGS: IS KPAL KWBG PGOV PHUM PREL PTER SUBJECT: MUNICIPALITY APPROVAL PUTS SHEPHERD HOTEL ONE STEP CLOSER TO NEW CONSTRUCTION REF: JERUSALEM 811 Classified By: Consul General Jake Walles, per reasons 1.4 (b) and (d) ¶1. (C) Summary. The Jerusalem Municipality Licensing Committee approved plans to build two apartment buildings on the Shepherd Hotel property, pending certification from other agencies -- such as the Antiquities Authority and safety inspectors -- according to Municipality officials. The remaining certifications could delay the project for several months. Jerusalem attorney Danny Seidemann said that political pressure could stop the plan at this point, but that once the final license is issued, stopping it becomes a legal matter. End Summary. PLANS FOR SHEPHERD HOTEL CONSTRUCTION RECEIVE PRELIMINARY MUNICIPAL APPROVAL -------------- ¶2. (C) Deputy Head of the Jerusalem Municipality Department of Building, Licensing, and Enforcement, Naftali Levy, told PolOff July 7 that the Licensing Committee on July 2 gave initial approval to plans for two two-story apartment buildings on the Shepherd Hotel property in East Jerusalem's Shaykh Jarrah neighborhood. Levy said the developers need to obtain 30 certificates of compliance from various agencies and make some architectural modifications to the blueprints before receiving a building license. He said the certificates include ensuring appropriate preservation of the designated historical section of the building; demonstrating that the building meets safety and environmental codes; obtaining approval from the Antiquities Authority to break ground; and obtaining approval from the Roads Department to connect the new complex to existing roads. Levy said meeting these conditions will take roughly six months, at which point the Municipality will issue a building license. ¶3. (C) Deputy Political Advisor to the Mayor, Elad Halevy, described the Planning Committee's approval as a preliminary step toward construction, not a final approval. He said the developers "are not allowed to move one leaf or one grain of sand" until they receive the actual building license. He said the plans could still be delayed by failure to comply with zoning regulations, but that he doubted the developer would allow this to happen. WINDOW TO PREVENT CONSTRUCTION CLOSING -------------- ¶4. (C) Jerusalem attorney Danny Seidemann reviewed the Shepherd Hotel plans in late June, and told PolOff July 7 that the blueprints contain no technical flaws that could prevent the construction. He said the length of time the Municipality took to review the plan demonstrates how carefully Municipality officials are treating this project. He said his sources inside the Municipality told him Mayor Barkat wants PM Netanyahu to make a decision on this issue, because of the sensitivity of the project. Seidemann said that the Municipality and GoI could still halt the approval process based on political considerations, but that once the license is issued, the window to intervene closes. WALLES