In a recent Planning Commission meeting, the proposal for Coconut Oak LLC, formerly LB Homebuyers LLC, was discussed, focusing on an administrative permit for short-term rentals in Carmel Valley. The project, located at 27610 and 27612 Schulte Road, aims to utilize two existing single-family dwellings for short-term rental purposes, allowing a maximum of twelve occupants across both properties.

The proposal was initially continued from a previous meeting due to public concerns regarding potential code violations. However, an investigation by code enforcement found no merit to these allegations, leading to the case's closure. The project is situated within a floodplain and is zoned for low-density residential use, with the applicant submitting an operational plan that includes strict guidelines to mitigate neighborhood impact.

Key features of the plan include a rental period of seven to thirty days, a limit of one rental contract at a time, and a total of six designated parking spots for guests. The property will adhere to the county's noise ordinance, with quiet hours enforced from 9 PM to 7 AM. Additionally, the applicant has committed to prohibiting events, smoking, and illegal drug use on-site, and has appointed a property manager available 24/7 to address tenant and neighborhood concerns.

Despite support from the Carmel Valley Land Use Advisory Committee, public opposition was voiced regarding the potential increase in noise, traffic, and the cumulative impact of short-term rentals in the area. Residents expressed concerns that Schulte Road already hosts numerous commercial uses, including RV parks, and that the proliferation of short-term rentals could further disrupt the neighborhood's character.

The Carmel Valley Association and Land Watch have called for a comprehensive environmental review before approving any new short-term rental applications, citing the need to assess the overall impact on housing supply and community dynamics. Nevertheless, staff recommended approval of the permit, asserting that the project meets all necessary findings and qualifies for a categorical exemption under CEQA guidelines.

The Planning Commission will deliberate on the proposal, weighing community concerns against the applicant's compliance with regulations and the potential benefits of the project.