The agreement to build the underground subway line for the 2.6-kilometer section of Tel Aviv light rail's Green Line along Ibn Gvirol Street was signed at the Tel Aviv-Jaffa Municipality. Digging will begin in 2015 and cost NIS 2 billion.

The government will provide interim financing for the project, until the billions of shekels surplus revenue from four huge real estate projects arrives. The Tel Aviv Municipality will give these projects increased building rights of up to 750%, rezone the lots for residences, and has promised to expedite the planning and permits procedures and to forego the betterment taxes on them.

The four projects will have 2,227 apartments altogether, half at the current site of the train station on Arlozorov Street, as well as 813,000 square meters of commercial and office space. One project is for an 80-storey skyscraper at the corner of Menachem Begin Road and Shaul Hamelekh Street, which will become Israel's tallest building.

Published by Globes [online], Israel business news - www.globes-online.com