Walnut Creek Planning Commission Meeting – May 28, 2026

The Walnut Creek Planning Commission met on May 28, 2026, to consider a conditional use permit (CUP) for a short-term rental at 635 Mandarin Lane and another CUP to extend alcohol hours at Daryush restaurant. After a public hearing and deliberation, the commission denied the short-term rental CUP and approved the alcohol hours extension.

Public Comments & Testimony

• Jim McCamish (neighbor, 714 Mandarin Lane) argued that the draft resolution does not adequately show how the short-term rental will protect neighborhood safety and character, as required by the General Plan. He noted the finding relies only on “no sign” and lacks meaningful explanation.
• Jane McCamish (neighbor) reported being woken up 3–4 times at 1–2 a.m. by loud talking from the property, which sleeps up to 14 people. She expressed safety concerns and urged denial.
• Jan Warren (neighbor, 40-year resident) described a neighbor whose husband is ill and who initially flagged the unpermitted operation. She noted frustration with city response, observed a rental car parked in an inconvenient spot, and questioned whether the garage is used for parking.

Discussion Items

4B – Crow Short-Term Rental (635 Mandarin Lane, Y25-086)

• Staff Presentation (Stephen Cook, Assistant Planner): The property is a single-family home in the Woodlands neighborhood. The applicant had operated the rental without a permit; staff sent violation letters in March and April 2026. The applicant now seeks a CUP under the city’s bed-and-breakfast ordinance. Staff noted that most findings can be met, except finding C (maximum stay of one week), which the commission could extend to 30 days via finding J. Staff observed no activity during day‑time site visits. Staff recommended approval with conditions.
• Applicant Presentation (Hector Krauss): He argued short-term rentals are beneficial, citing 173 such rentals in Walnut Creek generating $7.3 million annually. He described the property as meeting a need for families visiting hospitals (John Muir, Kaiser) or attending weddings. He detailed noise monitors (Minut device), security cameras, and guest screening (minimum three 5‑star reviews). He acknowledged prior operation without a permit but claimed he was initially told there were no regulations. He disputed neighbors’ concerns, calling them based on misconceptions, and presented 50 signatures of local business supporters.
• Commission Discussion: Commissioners expressed discomfort with the applicant’s history of non‑compliance despite multiple notices from staff (at least four times). Commissioner Count noted the property could still be booked for one night. Commissioner Kwok suggested that granting a CUP might be seen as rewarding non‑compliance. Commissioner Moran favored creating a regulatory framework through a CUP to gain enforcement “teeth.” Chair Needing questioned whether the findings could be made given the ongoing violation. After debate, a motion to deny was made (citing inability to make finding #2: use not detrimental to public health, safety, or welfare). The motion passed 3–1 (moran yes, Kwok no, Needing yes; Count’s vote not clearly recorded in transcript). Staff will bring a resolution formalizing the denial basis at a future meeting.

4C – Daryush Restaurant Alcohol Hours Extension (1534 Locust Street, Y26-017)

• Staff Presentation (Simmer Gill, Senior Planner): The restaurant currently operates under an administrative use permit with alcohol service until 11 p.m. The request extends alcohol sales to 12:30 a.m. and consumption to 1 a.m. daily. The site is in the downtown pedestrian retail zone. Walnut Creek PD confirmed no calls for service. Staff found all CUP findings met and recommended approval.
• Applicant (restaurant owner): He said extended hours would allow customers to enjoy food with drinks later, noting the restaurant’s kebab and grill menu pairs well with liquor. He clarified live music or DJ is only occasional for private events.
• Commission Decision: The commission found the application straightforward and unanimously approved the CUP.

Key Outcomes

• Denied (3–1): The CUP for short-term rental at 635 Mandarin Lane (Y25‑086). The commission concluded it could not make the finding that the use would not be detrimental to public health, safety, or welfare, given the applicant’s repeated non‑compliance with city regulations. Staff will return with a written resolution of denial.
• Approved (unanimous): The CUP to extend alcohol sales and service hours at Daryush Restaurant (Y26‑017) to 12:30 a.m. sales / 1 a.m. consumption, seven days a week.
• Continued: Item 4A (cash‑in short‑term rental, Y25‑105) was postponed to a date uncertain.