The City of Jerusalem decades ago lawfully and publicly created this area to be for a public municipal park with tourist amenities many years before any houses there. Those who squatted and built on this public land knew they were doing so illegally. In US they would be torn down. Jerusalem/Israel will be condemned by Obama and many in world no matter when or what done. Build the park and tourist amenities as it will benefit the city and its residents and visitors.
Ya'alon okays administrative detention of Jewish extremist suspected in church arson (Haaretz)
from the article: Mayor defends plan to raze Palestinian homes in East Jerusalem