AMMAN - Car rental agencies ordered to vacate their premises in King Abdullah Gardens on Sunday said it was critical that an appropriate solution be reached with municipal authorities to avert a potential crisis in the sector.
A committee representing those affected by the decision is slated to meet with Amman Mayor Omar Maani on Wednesday to discuss the move, which it said has serious ramifications for the industry and its employees.
"The decision was clearly not planned well and did not consider the social and economic impact on the sector or the huge financial losses that will be incurred," Najati Shakhshir, who heads the committee, told The Jordan Times yesterday.
"We are going to explain the scenario and hope an appropriate agreement that serves both Greater Amman Municipality's (GAM) interests and ours can be reached," he added.
GAM issued eviction notices to 160 retailers operating in the facility in March, informing them that they need to vacate their premises when their leases expire.
The decision affects 35 car rental agencies operating in King Abdullah Gardens.
GAM said at the time that the decision, which was taken by the Land and Appropriations Committee, was prompted by plans to develop and enhance the natural landscape of the area, preserve it as a cultural attraction and put an end to increasing complaints of littering and environmental violations in the vicinity.
Jordanian Car Rental Association (JCRA) members, however, were not convinced, noting that rehabilitation of the premises would not have required their evacuation.
A JRCA official said they informed GAM of their willingness to financially contribute to any plans which would enhance the area's services to the public.
JCRA President Saleh Jallouq told The Jordan Times that the eviction notice, if it is enforced, will affect more than 2,000 employees working in car rental agencies and lead to around JD60 million in losses, indirectly affecting 10,000 families.
One disadvantage facing car rental agency owners is that the yearly contracts signed with GAM are not governed by the Landlords and Tenants Law.
Shakhshir said the contracts are given on an annual basis, a situation that was not taken into consideration when the businesses were established.
"Nobody expected that GAM would take such a decision one day. Now everyone has to vacate as soon as their annual contracts expire, the last one being in March 2009," he said.
Car rental agencies occupy four out of the King Abdullah Gardens' 88-dunum area.
Located in a largely residential area of Shmeisani, the facility houses commercial and recreational enterprises such as shops, cafés and restaurants, as well as a small theme park for children.
A small yet strategic area, it has grown over the years with new enterprises and is now home to nearly half the country's international and local car rental agencies.
Some of these agencies had just signed contracts with GAM and were still in the process of furbishing and decorating their offices when they received the eviction notices.
During a JRCA meeting yesterday Jallouq said the loss of the prime location will undoubtedly set back and hinder business.
The JRCA president said they had requested GAM to provide them with an alternative strategic operational location on which to reestablish their businesses to help reduce the fallout from the decision.
Deputy Amman Mayor Amer Bashir earlier said on a radio show that GAM would be willing to consider providing an alternative location and give businesses enough time to vacate. No official stand has been taken, however, and some industry representatives said yesterday that the plan was shelved.
But Shakhshir told The Jordan Times that he remains optimistic about the upcoming meeting with the mayor.
"We are going into this with an open mind and hope the same of GAM," he said.
"Forcing us to vacate without alternatives or compensation could lead to catastrophic consequences for this service sector. They should at least be willing to give us a proper location, compensation and enough time to make the transition," he added.
If a solution cannot be reached, plans may include filing a lawsuit for financial damages incurred by losing the prime location. Others include closing down businesses and giving up their cars to GAM.
The JCRA expects an alternative operational location would cost GAM around JD20 million.
By Dalya Dajani
© Jordan Times 2008
