The 1996 Honors Dinner of" the organization that's building trade with Israel! The America-Israel Chamber of Commerce of Michigan invites you to an evening of Entertainment • Inspiration • Fabulous Food Sunday, March 17 6:30 p.m at The Somerset Collection, Troy. Distinguished Guest Speaker: Harry J. Pearce Vice Chairman, General Motors Corporation Revealing how changes in the global marketplace will affect GM, Israel and you! The Chamber's 1996 Honoree: Stephen M. Grand President , Deco-Grand, Inc., the local company that's helping Israeli firms become links in the international automotive supply chain. DON'T MISS THIS MEMORABLE EVENT! $96 per person. (Dietary rules observed) Proceeds benefit the America-Israel Chamber. For reservations or more information, (810) 646-1948, or fax (810) 646-9332. (8 )624-730 Showroom Hours: Monday-Friday 11-5, Saturday 11-3 or by appointment 06 3160 Haggerty Rd. • West Bloomfield • 48323 Israeli Urban Dream May Be A Night i GALIT UPKIS BECK SPECIAL TO THE JEWISH NEWS M odi'in — the Housing Ministry's solution to the central region's over- crowding problems — is suffering birth pangs. The pace of building is slowing down, the number of house sales is disap- pointing and the companies con- structing the city are showing signs of frustration. According to the results of the Housing Ministry's most recent tender to lease land for the con- struction of 500 houses, land prices in Modi'in have decreased by more than 10 percent. And the average price per plot has fallen to about S10,600 from an average of $12,000 in the previous tender, published several months ago. The only tangible evidence of the city's extensive plans are the bulldozers and foundations for large-scale construction of apart- ment complexes. (There will be virtually no apartment buildings more than four stories high.) In time, this still-desolate area, just off the highway about midway be- tween Tel Aviv and Jerusalem, is slated to become the fourth-largest city in the country. Plans include modern schools, shopping centers, sports centers, an industrial park, modern roads, and a subway system as well as parks and gardens. In addition, Modi'in will be Israel's first city with under ground communication and electrical cables. In the summer of 1996, there should be homes for over I 5,000 people, and by the year 201u, for 120,000-130,000. Ultimately, Modi'in is expected to house some 250,000 residents. But fewer than 3,000 families have actually pur- chased apartments so far. Less than a year ago, following a big advertising campaign, po- tential buyers flocked to Modi'in in search of a dream house. At the building sites, they were handed a number and asked to wait in line. The sales agents handed out at- tractive prospectuses and de- scribed the advantages of owning a home away from the hustle and bustle of the Dan region yet lo- cated near employment, enter- tainment and educational institutions. Following a rush to buy, people suddenly started to lose interest. For almost six months apart- ment prices in Modi'in have re- mained unchanged while sales have reached a standstill. In an attempt to increase sales, contractors are giving discounts, and designing features like rooms that can double as an office or clin- ic, private elevators and mezza- ( IV rt . ;- nine balconies. Mivnei Gazit's Country Modi'in neighborhood has its own private country club with a pool, exercise room and public gardens. According to Gil Baram, gen- eral manager of Rolav marketing company, the slowdown is due to an incomplete picture of the future town portrayed by the Housing Ministry and developers. "There are attempts to place a stigma on Modi'in. Instead of pre- senting the public with a full glass including all the difficulties and problems they can expect to en- counter, there is an attempt to pre- sent them with a half-empty glass," says Mr. Baram. Follow- ing pressure from contractors, the Housing Ministry is considering offering government location as- sistance loans to Modi'in apart- ment buyers. The loans might encourage the city's settlement and development but the govern- ment's approval process is ex- pected to take time. Plans include modern schools, shopping centers, sports centers. Contractors blame lower prices on the drop in demand for hous- ing. Also culpable is Aryeh Mizrahi, director general of the Housing and Development Min- istry, who announced in October that "apartment prices will fall within a few months." Amir Rahlevski, general man- ager of Grufit Public Works & Building, says, "It was a mistake to create expectations that the city is only for young couples who are in search of very cheap housing." Grufit is constructing a neigh- borhood of 106 houses. Prices vary from $125,000 for a three-room apartment to $180,000 for a five- room and $220,000 for a duplex apartment. According to Yisrael Ben-Yakar Gat, manager of Ben-Yakar Gat, Modi'in is targeted at the middle and upper class. The company is developing a neighborhood of 500 luxury apartments and cottages on one of the highest points in the city. "Our aim is to attract customers from the higher socioeconomic groups in the country, families that are searching for luxury rather than bargains," says Ben- Yakar Gat. Transport problems have also deterred many potential buyers.