Permits cannot be conditioned on racial discrimination and even expropriation cannot be informed by the theory of lets buy out the Arabs, in primarily Jewish towns, or lets buy out the Jews, in primarily Arab towns. Having said that, it is completely permissable & normal to require owners of private lands to pay for connection to infrastructure. If Suad was in fact told that he shouldn't waste his time that he would be held up for 30 years, whoever told him that should be investigated and disciplined. But Suad has to meet his obligations, including providing a detailed plan for connection to infrastructure. The level of detail must be what is ordinarily required, no less no more. And, of course, when building occurs, inspection must confirm adherence to the plan.
Jordan foreign minister says to speak with Kerry on Israel-Palestinian conflict (Reuters)
from the article: Jewish town won't let Arab build home on his own land