Nesher mayor threatens legal action over Nvidia land deal

Nesher mayor threatens legal action over Nvidia land deal
Nvidia Mevo Carmel development center credit: Assaf Gilead

The Nesher municipality has joined the threats of legal procedures against the state if it is granted NVIDIA to the new development center that it plans to build in northern Israel. Last week, we informed that the confrontation line settlement forum was threatening the “legal steps” against this step by the state. Now, the Nesher municipality says, “Wherever NVIDIA is offered alongside the advantages and exemption from a tender, unlike the law, we will present a petition.” What did the state in the past to attract giant companies to Israel, and what are the chances of success of such a petition?

As we mentioned recently, the NVIDIA, which published RFI in July for the purchase of lands for a new development center in the north, is currently in a row in choosing the most appropriate location of the center. Among the sites listed in the brief menu from the Mevo Carmel Science and Industry Park in the Megiddo Local Authority, the Earth near Tivon, the Earth in Kiryat ATA, and Land in Nesher. With the passage of time and the moment of decision -making, the battle around the new NVIDIA center is heating, and now some parties threaten legal procedures.

The first to do this is Moshe Davidovich, head of the regional council in Matti Ashir and head of the confrontational line forum in the far north of Israel. Join him now, Nesher Roi Levi. “When we want to want to develop an urban construction plan, when we want to face a deal with the Israeli land authority, it always takes time, and this is the case with bureaucracy here. Yokne’am.

He added: “If they succeed in making Nvidia in a deal with the state, the company will not remain here. You do not need this headache. This is a deal that requires a full legislative procedure, and we enter an electoral year. Instead of oil refineries.” The oil refinery is located in Bazan in the Haifa Bay area, within the jurisdiction of the Nesher municipality.

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According to the information that has reached “Globes”, Levi is mainly angry at the possibility of the land to allocate NVIDIA in the neighboring city of Keriat ATA, but he announced that he would offer a petition in any case in the event that the giant of international chips is given illegal benefits, as described.

In Nesher, NVIDIA is displayed on the only land that is not the land of the state. This is an advantage, because private lands will provide NVIDIA the legal headache that is followed by the allocation of state lands with an opponent.

The NVIDIA case is somewhat unique: a company looking for 120 dunams (30 acres) of land for a huge development center consisting of 180,000 square meters of built -up areas, in a well -defined area in northern Israel, southern Haifa. Therefore, it is difficult to compare it with other counterparts in the past, but one thing can be mentioned with certainty: if the state gives the company’s lands in a package that includes tax advantages, this will not be the time that it did in that for a major company. What’s more, the law appears to be next to it.

The proposal of the Israeli Land Authority and the Ministry of Finance to grant Nafidia to the lands of the country that the company chooses is scheduled to discuss the Israeli Land Council soon, and this is the body that aims to agree to the proposal. According to the fourth chapter of its constitution, the Israeli Land Council “may allocate urban lands without a tender for all tenders of mandatory tenders and mandatory tenders regulations.” According to Article 28 of the regulations, “exemption from the mandatory tender” may be granted, an exemption from adhering to retaining a transaction tendency in special circumstances “provided that the exemption committee, with the approval of the Minister of Finance, is for special reasons registered to revive it from commitment to the tender.” Since the Ministry of Finance is one of the bodies that promote the proposal, there is no problem with approval.

In addition, the “Globes” examination finds that the benefits to NVIDIA will not be the first to be granted to large companies regarding leasing lands. In 2001, the state adhered to grant Intel $ 437.5 million and tens of millions of dollars in tax benefits, as part of an investment agreement in Israel. That year, Intel 275 Dunams of Land in Kiryat GAT was allocated by the Land customization committee without tender.

In the event of excuses, starting from November 2024, the land was granted, with a tender, to the defense company Rafael in the Ramsa Becca industrial area in Negif. The company was awarded 890 Dunams to build a factory with a deduction of more than 210 million NIS. It should be noted that the site is in an area with a national priority, which makes the allocation of lands at a reduced price in this case.

“The state will find justifications

For all the legal reasons and precedents mentioned above, the question remains whether the petitions, if presented, can put difficulties on the NVIDIA road and delay the land purchase of the new development center. Experts we spoke to do not exclude the possibility of delay due to legal procedures, but we believe that sits will be rejected.

“As a science, the state and the authority of Israel are enabled the lands to provide discounts on the ground in such cases, and I doubt whether this petition has been accepted by the Supreme Court of Justice,” said one of the sources. “It is clear that discounts and advantages have been given regarding the purchase of lands in the past, although the NVIDIA model may be a little different. In any case, the Israeli Land Authority can make an individual decision regarding a specific company, and if the issue of land in an area with a national priority, it will be easier.

Another source says: “As long as the legitimate considerations are represented, and it does not appear that political considerations are mixed on this issue, the petition is not a real opportunity,” but it indicates another issue in this case. “It is very strange to give the ground to the Earth to a company that has announced anyway that it is looking for specific lands in the north, only to transfer it from one settlement to another. If they have to give NVIDIA advantages to move to Yokneam to Knessat or Tivon.

It was published by Globes, Israel Business News – En.globles.co.il – on September 15, 2025.

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