Carmel BZA denies special-exception request for short-term rental at 10470 Roxley Bend

The Board of Zoning Appeals on June 23 denied a special-exception request (docket PZ202500099SE) to operate a full-house short-term residential rental at 10470 Roxley Bend in Windsor Grove 2. The homeowner, Vivian Kane, and her representative, Stephanie Gilbert of ZenWave, presented for approval.

The decision follows multiple neighbor complaints, a department recommendation against approval and a code-enforcement violation letter noting the property had been rented prior to a permit. City staff said the Carmel Police Department documented at least six incidents this year related to noise and traffic tied to the property, and the Department of Community Services recommended negative consideration of the petition and adoption of negative findings of fact.

Owner Vivian Kane told the board the house is her primary residence and that renting is necessary for her livelihood and retirement plans. "This is my livelihood. I don't wanna be taken away," Kane said. She described screening measures, on-site property management, noise monitoring and photo/video monitoring of the exterior. Kane said she targets "executive" and faith-based groups and described the listing as high-end hospitality.

Neighbors and homeowners' association representatives described repeated disruptions. Teresa Estrada, a Windsor Grove homeowner and member of the HOA board, said a neighborhood canvass found most reachable residents opposed short-term rentals and that the covenants may prohibit special uses that are not incidental to single-family dwellings. Several neighbors reported three rentals in recent weeks, including a bachelorette party that produced loud music and disturbances audible inside adjacent homes. Helen Wang, who lives next door, raised safety concerns and cited the 1994 Indiana law commonly referred to in public comment as Zachary's Law, saying transient guests cannot be screened in the same way as residents.

Department of Community Services staff read from a two-page report stating the short-term-residential-rental ordinance seeks to minimize adverse impacts on residential neighborhoods and that a special-exception application "shall not generally be entitled to favorable recommendation." Staff said code enforcement had sent a violation notice, and that the police had recorded multiple complaints this year about the property. For those reasons staff recommended denial.

Board members expressed concern about ongoing rentals while the petition was pending and the number and breadth of resident complaints. Board member Kim Ryder said, "If I was looking for a perfect example of a short term rental not to approve, this would be it," and other members echoed safety, noise and neighborhood-integrity concerns. The board took a motion to approve made by Kim Ryder and, after discussion and public comment, voted against approval. The petition was denied; the board directed that negative findings of fact be written by the BZA attorney.

Next steps: Because the BZA adopted a denial, the petitioner does not receive a special-exception permit. Code enforcement and the police department remain the channels for neighbors to report any future violations; the BZA record will include negative findings of fact prepared by the attorney.