City planning staff told council that Crypto House LLC applied for a conditional use permit to operate a short-term rental at 1069 Rugby Street. Bobby Tahan said staff discovered that the applicant installed several improvements without permits, including an accessory structure containing a kitchen and bathroom, and that staff has issued violation notices.

Tahan said the neighborhood analysis shows few existing short-term rentals nearby and that neighbors testified in opposition at the Planning Commission public hearing. The Planning Commission voted 7–0 to recommend denial; staff stated the application will not be scheduled for further public hearing before council until the property owner corrects the violation notices and brings the property into code compliance.

No council action occurred at the work session; staff listed the denial recommendation in the Planning Commission record and advised that corrective actions are required before the item can proceed.