May 21, 2026
Hello everyone.
In this newsletter, I will continue to report on the issues raised at the last Council plenary session on May 12 and at the public information meeting, regarding a huge, important construction project. I attended this meeting. I haven’t forgotten my promise to report on the topics discussed in the closed-door meeting following the Council Chairman's directive. The second topic discussed behind closed doors has already been published on social media (a motion for the agenda submitted by members of the Chozeh Chadash Party regarding the job description of Council Member Odelia Kedmi. Read about it on social networks). The first topic discussed is super important to the public and the matter is being handled; I will report on it when I can. I'm on it.
Here is the summary:
- First issue: It appears there is no money in the council’s development funds—where did the money go, and how does this affect residents?
- Second topic: A pay raise for Deputy Council Head Meir Vanunu was approved.
- Third item: Report from a public briefing (not a public hearing) on the plan for the eastern entrance to Zichron Ya’akov, converting the abandoned Carmel Winery complex into a mixed-use neighborhood of commerce, hospitality, and residential areas, while changing the entrance to Zichron Ya’akov from Beit El Square to HaNadiiv Street, which will become mostly a pedestrian mall.
First topic: It appears there is no money in the council’s development funds—where did the money go, and how does this affect services for residents?
In terms of the council’s finances, there is a distinction between the annual budget allocated for operating expenses (primarily salaries, payments to contractors, and building rentals) The extraordinary budget/reserve fund includes all the funds in the development funds, which are received in small increments throughout the year from betterment levies and other fees paid by residents, as well as funds from the Mifal HaPais lottery. The treasury must strictly separate the two—one cannot be used for the benefit of the other.
Meanwhile, the annual budget is approved by the plenary once a year. Therefore, the budget meeting is extremely important because it is a single discussion regarding a budget of 258 million NIS. We are required to approve the Special Reserve Fund (Tabar) funds on a case-by-case basis, at every single meeting. We’re talking about hundreds of reserve fund items each year, each of which must be reported to council members and requires our approval time and again. Development funds, as the name implies, are intended for development projects such as road paving, the planning and construction of public buildings, the renovation of schools and kindergartens, sports complexes, playgrounds, and more. Even after we vote in favor of a specific reserve fund—the Ministry of the Interior must approve it after verifying that there is indeed money in the funds and that this is an expenditure appropriate for the reserve fund and does not belong in the current budget.
At the last meeting, which I continue to report on here, we were asked to vote in favor of reducing reserve fund allocations. This is a routine process that occurs when a reserve fund or project for which we allocated a budget is completed and some of the money was not used, or when, after work begins, it becomes clear that not all of the allocated amount is needed. so we, the members of the plenary, vote to close that special fund or adjust the amount so that the treasurer can return the remaining money to the development funds for the benefit of other special funds we approve.
But at the last meeting, it was different—we voted to return funds from a special budget that had not been used at all. This was 274,000 NIS earmarked for a project entirely for the benefit of residents—mapping all the streets of Zichron Ya’akov in terms of infrastructure (electricity, sidewalks, roads)—to get an up-to-date picture of what needs to be repaired. Not to wait for a resident to fall or report an electrical fault—but to prepare in advance.
The mayor asked to cancel this project because he needs this money for more urgent matters. The second instance involved a cut of 300,000 NIS, which is half of what we had already approved to fix a drainage problem within the town. The explanation: perhaps we’ll receive this amount from the Drainage Authority. (I reported on this in the previous newsletter.) Council members suggested we not cut the amount now because it’s not certain the Drainage Authority will agree to fund it, and it would be a shame to halt the work. The council head replied, “I can’t just let the money sit there; I need it for other things.”
In total, we returned 600,000 NIS (plus another 200,000 NIS from the Gan Tiul reserve fund, which has been closed), and this set off a red flag for me because it appears the development funds are empty! Another indication that they are empty is the refusal to provide us with regular reports on how much money is in the funds and the status of the capital projects (there is a specific reporting format for this). This is despite the fact that it was already agreed that the treasurer would send us a quarterly report on the status of the funds. This hasn’t been done for a year now, with a different excuse every time.
I’m raising a major red flag here—we, the council members, who need to know how much money is in the funds so we can approve further grants from these funds, are not receiving this information. We have no idea what the balance is. And it was only at the last meeting that I suddenly realized there’s no money there, which is why they’re canceling and refunding.
Once the funds are empty and there is no money for development, the pressure on the council head to replenish the funds with more money increases. And the quickest way to do this is to issue more building permits for as many large homes as possible, or allow additional units, or promote real estate projects that will then pay high betterment levies that will go into the funds.
And here I raise another red flag—the construction boom, density, and traffic jams in Zichron Ya’akov are only expected to intensify. Because this is the easy way to please developers and replenish the empty funds.
Second issue: A pay raise for Deputy Mayor Meir Vanunu has been approved
When information isn’t shared with council members, the information that does come out is incomplete.
Here’s the context: At the budget meeting, it was noted that the Deputy Mayor would be employed at 100% capacity, but his salary was not specified—even when asked. Therefore, I wrote in the budget newsletter that his position had been increased to 100% without the plenary approving the salary increase as required by law.
So at the last meeting, a proposal to raise Meir Vanunu’s salary from 60% to 75% was brought before the plenary for approval. It was belatedly clarified that Deputy Council Head Meir Vanunu would be employed on a full-time basis at 75% of the salary.
Except for me, all council members at the meeting voted in favor. I abstained and did not vote against, solely out of respect for Meir Vanunu, even though I believe—and have written here more than once—that having two deputy heads at an annual cost of 1.6 million NIS is a waste of public funds, and it would be better to invest that money in things that will truly improve residents’ lives. Such as a permanent teacher at the Poah daycare center, free children’s activities for young families, and reducing the cost of community center classes. See the previous topic.
I wish Meir success in his role.
Third topic: Report from a public information meeting (not a public consultation) regarding the eastern entrance plan for Zichron Ya’akov, transforming the abandoned Carmel Winery complex into a mixed-use neighborhood of commerce, hospitality, and residential areas, while changing the entrance to Zichron Ya’akov from Beit El Square to Hanadiv Street, which will become largely a pedestrian mall
The Carmel Winery on the eastern side of the town, adjacent to Beit El Square, was permanently abandoned about a year ago when the winery moved to the Alon HaTavor Industrial Park to a modern production facility/winery. On Monday of this week, a public presentation of the plan—which will be submitted this week to the Regional Planning and Construction Committee—was held in the winery’s cellars, which date back 140 years. The developers hope to complete the approval process within a year so that bulldozers can begin work in 2027. Currently, bulldozers are on site dismantling the winery’s non-preservation-worthy tanks and warehouses.
Representatives of the three project developers participated in the meeting and spoke: Carmel Wineries; Amram Avraham, a publicly traded company listed on the stock exchange; and She-Hai Ltd., a private company owned by Ofer Biton. The council head spoke and answered residents’ questions. The project architect, Eran Mabel, presented the plan and the drawings.
The entire eastern hill where the winery is located, along with the winery’s massive stainless steel tanks, is set to be transformed into a residential neighborhood of 200 apartments that will be integrated into a complex of streets featuring tourism and a hotel to be built. The winery building will undergo a NIS 120 million renovation and will likely house shops, an event hall, galleries, and even a Carmel Wineries boutique winery where the brand’s premium wines will be produced.
On the other side of the road, the western part of the winery borders the council’s operational complex. There is a plot of land also owned by Carmel Wineries (which is part of Complex Sh/1058) and is included in the plan. In the western section, the national headquarters of Carmel Winery’s offices will be built, along with a massive parking complex serving the project and Givat Zamarin (which will be developed separately under Plan Sh/916 B), as well as additional shops, tourist areas, galleries, and residential units.
On the western hill, which is part of the Sh/1058 plan, there is additional land not related to the project presented —an area on which a residential neighborhood of 250 units will be built under various ownerships—so that in about ten years, the entire eastern entrance to Zichron Ya’acov (Beit El Square) will look completely different—it will feature a residential neighborhood of hundreds of units as well as a tourism and entertainment complex for the historic winery. At the meeting, the council head promised that these would be three-story buildings, so that this massive neighborhood would not appear as an eyesore in the Zichron Ya’akov landscape but would blend in. Let’s hope he keeps this promise. Because even in the Halomot neighborhood, built during his previous term, the number of stories on all the buildings increased.
In addition to the plan presented, and regardless of its developers, the council is initiating the addition of a new section to the pedestrian mall. The new section will run from the Bendik store on HaNidiv Street to the entrance to the winery cellars near the current operations center. This entire section will be closed to vehicles. The garage and the Telem supermarket (formerly 10-10) will likely operate to change in accordance with the rights granted to them. At the meeting, it was not explained exactly what will be there. They said a pedestrian mall up to the winery.
Therefore, the road from Beit El Square to Zichron Ya’akov will end right next to the winery building, and vehicles will continue left onto a new road that will wind its way up to the center of Jabotinsky Street. The new road will pass where the Council’s operations and the Ronis store are currently located (which will, of course, be removed), and it also includes buildings designated for preservation, such as the old oil press owned by the Agricultural Committee and the bottling/barrel-aging facility of the Carmel Winery. On the new road near the Bendik warehouses, a roundabout is planned where vehicles can turn right onto a new access road reserved exclusively for residents of Wine Street and Givat Zamarin, as well as the hotels to be built there. Givat Zamarin is also planned to become a large pedestrian mall featuring galleries, hotels, and residential buildings. A presentation of this plan to residents is planned for the future. If the connection to HaMeyasdim Street would have remained, it would have prevented part of the expected traffic congestion problems arising from the project and the neighborhood.
It was stated at the meeting that, as part of the plan, the council will receive 1,200 square meters of public buildings. I intend to follow up and push for a public facility to be built on this site, rather than yet another synagogue or synagogue event hall, as we already have more than enough of those. Instead—a youth center, a youth club—because young people have nowhere to go in the community. The plan is expected to bring in high betterment levies to the council’s coffers, and I hope the money will go toward improving infrastructure, roads, and schools in the community. Only for the benefit of the general public, not a specific sector.
Another problem I see with the plan is its strong resemblance to the Wine Park project—there, too, hotels, galleries, and shops are set to be built. I’m not sure the town needs two new large tourism complexes. And this is in addition to the existing hotels and the pedestrian mall, which are struggling to attract tourists. Mainly because on weekends, almost no places are open (due to the owners’ preferences). So I asked at the meeting: Will this tourism complex be open on Saturdays? The winery’s CEO said the winery itself cannot be open on Saturdays. The council head didn’t really answer. My feeling is that the entire complex will be closed on Saturdays. And the tourism problem will remain.
In response to a question from the audience—whether there is justification for so many hotels in Zichron Ya’akov, given that a 600-room hotel is set to be built on Nahsholim Beach and plans have already been approved in the Carmel Coast communities to open four more hotels and a camping complex— The council chairman replied that the developers have certainly conducted feasibility studies on the matter, and if they are building, it means there is a business case. Furthermore, he believes that Israelis are looking for places to travel and stay within Israel, and Zichron is set to become a tourist hub that will attract approximately 100,000 tourists annually who will stay overnight. It is to be hoped that the hotels and commercial complexes will pay high property taxes, as this is a significant source of revenue for the council’s budget.