A Comprehensive Initiative for Rural Community Expansion in the Galilee Strengthening the Negev and the Galilee:

To strengthen Israeli society through stimulating and accelerating the expansion of rural communities in the Galilee and the Negev in order to revitalize the civilian Jewish presence in these strategic peripheral regions. OUR MISSION OUR MISSION

To initiate and implement a centralized coordinated development initiative for rural community expansion.To initiate and implement a centralized coordinated development initiative for rural community expansion. To raise funds to establish an Infrastructure Capital Development Fund (ICDF) that will provide the impetus for a new model for rural community expansion.To raise funds to establish an Infrastructure Capital Development Fund (ICDF) that will provide the impetus for a new model for rural community expansion. OUR OBJECTIVES OUR OBJECTIVES

Demographics Geography Aging population MAJOR PROBLEMS FACING THE GALILEE MAJOR PROBLEMS FACING THE GALILEE

DEMOGRAPHICS – UNDENIABLE FACTS There is stagnant Jewish population growth in Israel’s Northern Region. Until 1961, Jews comprised 58% of the population in the Galilee In 1984, Jews became a minority in the Galilee. In 2002, Jews comprised only 45% of the Northern District’s population. The natural growth rate of Jews to Arabs in the Galilee is 25:100.

60%58%52%50%48%46%44%42%38%36% Non-Jews Jews DEMOGRAPHIC CHANGES Jewish and Non-Jewish Populations

GEOGRAPHY GEOGRAPHY The majority of the Northern Regions’ Jewish population is concentrated in its coastal urban centers. The non-Jewish population is concentrated in the interior region. Without the existing rural communities, the strategic central Northern region will have a minimal Jewish presence!

THE AGING OF THE POPULATION Comparative Population Age Structure 1993 and 2001

The Jewish Agency allotted the land for community expansion but left the development to community associations. The associations: –Had very conservative growth policies –Practiced exclusive acceptance criteria –Did not have the professional “know-how” to direct economically viable expansion programs. –Used expansion as a leverage for capital gain. Reduction in development and infrastructure grants. FACTORS THAT PREVENTED RURAL COMMUNITY EXPANSION

DIFFICULTIES IN ATTRACTING YOUNG FAMILIES TO RURAL COMMUNITIES Expensive housing prices due to contractors’ high profit margins. The community associations’ mandatory “entrance fees” ($5,000 - $15,000). The policy of passing capital costs and repayment of past debts on to new residents. Lack of a comprehensive marketing strategy focusing on the region's advantages

GOALS OF THE RURAL COMMUNITY EXPANSION INITIATIVE To reduce the cost of purchasing a home in rural communities by 20-25%. To aggressively market rural communities to upwardly mobile families To create a customer-oriented acceptance committee and accelerate acceptance. To generate continual demand for rural community living.

STRUCTURE OF THE CENTRALIZED, COORDINATED DEVELOPMENT PROGRAM The Jewish Agency for Israel Program Management Company Site Development Managers Contractors New Residents

PROGRAM ADVANTAGES 1.Reduction of the number of intermediaries. 2.Achieve economies of scale 3.20% reduction in construction costs 4.Significantly lower housing costs 5.Customer-oriented climate

ADVANTAGES OF THE INFRASTRUCTURE CAPITAL DEVELOPMENT FUND Allows for infrastructure development parallel to project marketing. Encourages initial investment from entrepreneurs in expansion projects Enables the development of new plots by reducing initial risk. Reduces purchase price and stimulates demand for purchasing homes. Will work as a revolving fund.

THE JEWISH AGENCY ADVANTAGE THE JEWISH AGENCY ADVANTAGE Mandate from the Israel Lands Authority for community expansion in the Galilee and the Negev Does not have to bid for public land tenders Brings added value through its continuum of community building programs. As the initiative sponsor, will reduce inefficiency and enforce accountability measures.

CREATING THE INFRASTRUTURE CAPITAL DEVELOPMENT FUND The sum of $1 million is needed to pilot the Infrastructure Capital Development Fund, to begin building the initial 80 – 100 plots, and propel the Initiative for Rural Community Expansion forward.

MEASURABLE RESULTS MEASURABLE RESULTS Within two years, the number of housing units in the Galilee will expand from 800 to

LONG-TERM RESULTS LONG-TERM RESULTS “Why does the Jew feel an affinity with Israel? Because everything here must still be accomplished. It depends only on him to participate in this privileged act of creation.” --- David Ben Gurion Creating and expanding vibrant rural communities and counteracting the negative migration from these areas. Successfully populating the rural areas in the Galilee and the Negev. Strengthening Israel’s peripheral areas Strategically securing the Galilee and the Negev and maintaining a vital Jewish majority On-going nation building