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The Rosh (Bava Kama 8:15) and the Taz (Yoreh Deah 116:6) permit uprooting fruit trees for building a house. The Chavos Ya'ir (195) explains that the Rosh permitted this only for building a house, but for a walkway, driveway or path to the house, or in case it prevents light from entering the house and is a big nuisance, one should cut back the branches but not the tree itself, even if it will require constant re-cutting.
Many poskim agree that even when it is permitted, there is danger involved in cutting down a fruit tree, therefore they rule that unless the need is very extreme, it is preferable to cut down the tree using a non-Jew, i.e. selling the tree to a non-Jew and hiring him to uproot the tree together with the land surrounding it in order to re-plant elsewhere. (If the non-Jew decides to pass up on re-planting, it is his business.)
The Shevet HaLevi was asked how one should uproot a tree for building.
Extending the גרויסע שטוב
The Belzer Rebbe, R’ Aharon zt”l lived in Tel Aviv, in a very small and narrow apartment, and barely had room for the many chasidim that entered. Nevertheless, he refused to extend his apartment which was known as the גרויסע שטוב (which served as a beis hamedrash and tish room) as the courtyard that it would be extended into had fruit trees growing in which would need to be uprooted. This was in spite of the fact that they hadn’t produced any fruit for a long time. R’ Aharon said that he had a kabbalah from his father, R’ Yissochar Dov, not to cut down fruit trees, especially because of the tzavo’ah of Rabbi Yehudah HaChasid.
During the “peiros tish” of Tu BiShvat 5711 when there were many chasidim gathered together, the rebbe saw how people were pushing and shoving and being squashed due to the lack of space. He also noticed that the גרויסע שטוב was unpleasantly full of sweat due to the crowds, and he decided that enough was enough and it was time to extend. However, the rebbe instructed that the trees be uprooted with the earth around them and replanted somewhere else (like is mentioned in the She’ilos Yaavatz and Shu”t Chaim She’al). He also instructed that they be sold to someone else, and not merely given as a present, to help ensure that the buyer would guard and look after the trees properly. He further stipulated that they should only be sold to someone who keeps shemittah. This was all in spite of the fact that the tree were old, and were no longer producing fruit (R’ Nossan Urtner, in his sefer Davar Chein Pe’er Moshe, Perek 5)