After more than two decades tangled in lawsuits, stalled financing, and institutional disputes, a major redevelopment project at Kibbutzim College in Tel Aviv is finally moving forward, setting the stage for hundreds of new homes alongside a rebuilt academic campus.
The breakthrough marks one of the most delayed and closely watched urban development stories in the city.
A campus reborn after twenty years in limbo
The project centers on Kibbutzim College of Education, Technology and the Arts, also known as Seminar Hakibbutzim, whose sprawling campus has sat in planning purgatory since the early 2000s.
This week, financing was formally secured. Bank Hapoalim and Israel Discount Bank confirmed they had signed a support deal with the college and developer Phoeniclass.
The initial phase of funding is estimated at around NIS 1.7 billion, a figure that signals how large and complex the redevelopment really is.
For college administrators, this moment has been a long time coming. Plans have changed, partners have come and gone, and the land itself has waited patiently.
Now, construction is finally on the table.
Where the project sits and what will be built
The Kibbutzim College campus spans roughly 52.5 dunams, just north of the Yarkon River, near the busy junction of Rokach Boulevard and Derekh Namir.
It’s a prime slice of Tel Aviv real estate, purchased by the college back in 1957 from the Government Development Authority, long before the area became as valuable as it is today.
Under the current agreement, the eastern side of the campus will host a brand-new academic complex dedicated to education, technology, and the arts. On the western side, 450 housing units will be built, alongside public spaces and some commercial areas.
The first phase alone will include:
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A new central college building
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134 residential units
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Supporting public infrastructure
That phase is expected to take about five years to complete.
Financing unlocked after years of deadlock
Money, more than design or zoning, was always the biggest obstacle.
Back in 2000, the college struck an ambitious deal with Phoeniclass, linked to Phoenix Holdings and America Israel. At the time, the land was valued at roughly NIS 1 billion, and the plan included demolishing old structures and replacing them with a modern campus plus three residential towers.
But things unraveled fast.
The college later claimed that a second advance payment of NIS 56 million was never transferred. Developers cited various reasons. Trust eroded. Construction never began.
What followed was a long stretch of legal filings, revised plans, and frozen timelines, even after a master plan for the site was approved in 2012.
This week’s financing agreement effectively clears the last major hurdle.
Decades of disputes that refused to fade
One of the thorniest conflicts had nothing to do with architecture.
It traced back more than 30 years, to the kibbutzim debt settlement of the 1990s, when roughly NIS 20 billion in kibbutz debt was erased. As part of that deal, kibbutz movements pledged to transfer future proceeds from land sales, including the Kibbutzim College site, to Bank Hapoalim.
The problem? The college itself is an association, not a standard company with shareholders.
For years, it argued it was not legally responsible for debts tied to kibbutz movements, even though those movements had effectively controlled the college until 2016.
That disagreement lingered like a shadow over every negotiation.
Another layer was added in 2017, when developers Phoenix and America Israel sued the Kibbutzim College Association, demanding enforcement of earlier agreements. The case deepened mistrust and slowed progress even further.
At times, the project seemed cursed.
Why Tel Aviv is watching closely
Beyond the campus gates, the city has a stake in this development.
Tel Aviv faces constant pressure to add housing, especially in central areas close to jobs, transport, and green spaces. A project that brings 450 new homes near the Yarkon River instantly draws attention.
Urban planners also see the mix of academic, residential, and public space as a rare opportunity. Instead of fencing off the college, the plan integrates it more closely with surrounding neighborhoods.
Local officials believe that, once complete, the area could become a lively connector between northern Tel Aviv and the riverfront.
That’s the theory, at least.
The first phase sets the tone
The next five years will matter more than the past twenty.
If the initial 134 housing units and the new college building rise on schedule, confidence in the broader plan will grow. Delays, on the other hand, would reopen old wounds.
Developers say lessons have been learned. Financing is structured differently. Legal frameworks are tighter. Decision-making is clearer.
Still, long-time observers remain cautious. Tel Aviv has seen enough ambitious projects stall to know better than to celebrate too early.
A symbolic turning point for the college itself
For Kibbutzim College, the project is more than real estate.
The institution has struggled in recent years with enrollment pressures and aging facilities. A new campus could reshape its identity, attracting students interested in arts, education, and technology in a modern setting.
Administrators say the redevelopment also allows the college to secure long-term financial stability, something that has been elusive for decades.
In that sense, the housing towers are not just apartments. They’re a lifeline.
From paper plans to concrete reality
After years defined by contracts, lawsuits, and stalled approvals, the shift to actual construction feels almost surreal for those involved.
Bulldozers and cranes will soon replace court documents and press releases.
Whether the full 450-unit vision is delivered smoothly remains to be seen. But for the first time since the turn of the century, the Kibbutzim College project has momentum.
