In November 2025, entrepreneur Nahum Rosenberger announced plans to develop Israel’s most expensive urban renewal project at the Hasbon (Hesbon) complex in central Jerusalem. The project, with an estimated investment of NIS 3.6 billion (about $1 billion USD), will span about 7 acres and include three high-rise towers of 41, 43, and 45 floors, comprising approximately 950 residential apartments.

Beyond housing, the development will feature extensive mixed-use components, including 8,600 square meters of retail space, 8,300 square meters of office and employment space, around 6,100 square meters of hotel use, and underground parking. Large areas will be dedicated to public use, reflecting the city’s priorities.

The urban renewal is being managed by Eden, Jerusalem Municipality’s economic development arm. Public-benefit allocations will include a 4,300-square-meter library, auditorium, and laboratories, four kindergarten classrooms, three daycare classrooms, a 600-square-meter synagogue, an 1,800-square-meter sports hall, and a 10-dunam public park. Some of the photos released by the developer are shown here.

The project is designed by the internationally renowned Dutch architecture firm MVRDV, in collaboration with Danish architect Jan Gehl, known for people-centered urban design. The local architectural firm is MAARCS, with landscape architecture by Urbanof (Orbanof), led by Lior Levinger.

Once a historic cigarette factory, the Hasbon complex is being transformed into a new, vibrant community and cultural hub in the heart of Jerusalem, aiming to create an innovative urban space that connects community life, culture, and the city center, according to the city, but Israeli-Greek architect Elias Mesinas sees things differently. He writes:

Jerusalem is a city whose urban identity was shaped over centuries through a balance between sacred sites, preserved skylines, and community-driven discussion. Today, that balance is being tested. At Hasbon compound, a proposal for a 50-storey three tower luxury development has triggered more than 200 objections from the local community concerned about the project’s scale, shadows, and long-term impact on public space. The issue is not whether Jerusalem should build or densify, but how it should do so, and for whom.

The city inherited from the British Mandate era three “red lines” in planning: protection of the skyline, building in stone, and preserving the valleys. As the city expanded westward with distinctive garden-city neighborhoods, and to the east with massive, dense but low-rise residential complexes, these principles ensured visual harmony with the Old City and the historic neighborhoods and landscapes and a sense of place for the local community. Recent urban-renewal policies — driven by seismic-risk mitigation (Tama 38), demographic projections for population growth, and mass-transit expansion — have challenged these constraints. The result has been a gradual acceptance of planning and zoning schemes previously considered unthinkable for the city, leading to a wave of approvals for high-density high-rise redevelopment for luxury living rather than affordable units, threatening to push long-time residents out of historic neighborhoods through ‘gentrification.’

Over the past three decades, Jerusalem’s Community Councils have played a critical role in engaging residents in planning processes and ensuring that the voice of the community is heard in planning committees. As someone who has served as an urban planner for one of these Councils, I have seen how local knowledge and civic involvement has improved plans, has protected open spaces and old trees, has increased public amenities, and has ensured that neighborhood character is considered.

Further, in 2023, community action even succeeded in rerouting the light rail planned blue line, to ensure that it does not harm the neighborhood but rather serves it. In the past, community advocacy has even succeeded in rejecting international ‘trophy projects,’ from Frank Gehry’s Tolerance Museum to Moshe Safdie’s residential plan in the Judean Hills, and in 2023, MVRDV’s proposal for the President’s Hotel site in historic Talbieh neighborhood: although significantly reduced in height after strong neighborhood objections — a case in which I personally delivered the community’s position to planners and the design team, ultimately, it was canceled and the property sold to another developer.

This context is essential for understanding the current Hasbon Square controversy. The site’s planning history began with approval for a single 30-storey tower on the old Pazgaz building in 2021. Over the years, through amendments and increasing developer ambitions, the proposal expanded into a three-tower scheme that now aims to also occupy land of Meir Sherman park – part of Independence park – a public park since 1921. Despite the impressive portfolio of the international teams involved — including architects MVRDV and urban planner Jan Gehl — the plan raises substantive planning concerns, and community objections, primarily about quality public space.

The community objects to the loss of meaningful public space. A significant portion of existing green area – Meir Sherman park – is proposed for development. The remaining open space would spend much of the year in shade due to the towers’ half-kilometer-long shadow — one projected to reach in the afternoon near the Old City walls less than 800 meters away. A public space without sunlight risks becoming symbolic rather than usable, inviting and pleasant.

The community objects to private sky courts labelled as public but inaccessible. Private elevated courtyards dramatically increase the project’s volume and height. Although described in the project documents as ‘public amenities’, these spaces are in fact private, for use by the development tenants only, leaving the local community with only a minimal share of accessible public use — around three percent, and a significantly bigger project.

The community raises objections about a compromised public square, the proposed plaza that sits behind tall structures that block sunlight and intensify winds, raising doubts about whether it will function as a comfortable civic space in Jerusalem’s microclimate, as intended.

The community also objects to surpassing the already dominated skyline of the historic city with high rise development planned or under construction. Breaking the existing policy with a 50-storey development, threatens to further compromise both the city skyline – visible from the public and open spaces in the city.

The development raises concerns about a high-end real-estate venture that maximizes returns while offering thin layers of “green” or “public” features. The Hasbon project proposed greenery on terraces 50 floors up does not inherently make the project “green,” nor does it justify expanding building rights or increasing the built volume. Similarly, branding shaded plazas as “vibrant” public spaces does not guarantee they will serve their intended users, given the environmental and micro-climatic conditions of public spaces dominated by high-risers. The project, as currently presented, does not adequately reconcile developer objectives with Jerusalem’s civic, environmental, and cultural needs.

This no doubt is a moment of decision. As the objection period comes to a close, the community’s message is consistent and measured: the question is not whether to build, but how to build responsibly and in a way that serves the city and the community. Jerusalem needs seismic reinforcement, affordable housing, and quality public space. But it also needs to preserve the values that make it one of the world’s most cherished cities. Good urban development can achieve both — respecting community, climate, heritage, and daily life.

Jerusalem has repeatedly shown that planning is strongest when residents, professionals, and decision-makers work collaboratively and all voices are heard. The Hasbon development offers an opportunity to reaffirm this approach. A project of this scale should enhance its surroundings, not overwhelm them; it should give more to the city than it takes. The city of Jerusalem and the local community deserve nothing less.

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