Developer wants 78 new short-term rentals in La Quinta, and neighbors cry foul

A proposal to allow 78 homes planned in La Quinta to operate as short-term rentals has drawn strong pushback from neighboring residents, with an initial vote expected from the city’s planning commission in February.

Known as the Estates at Griffin Lake, the 40-acre development first won approval from the city council in 2015. The land includes a former home of the late Merv Griffin, the creator of the TV shows "Jeopardy!" and "Wheel of Fortune," as well as a five-acre lake.

The property is surrounded on three sides by a community known as Griffin Ranch, consisting of more than 200 homes in a neighborhood first approved by the city in 2005. Both developments are located just south of Avenue 54, with the Madison Club to the north and PGA West to the south.

Several residents from Griffin Ranch have spoken out against the proposal to allow the short-term rentals since it emerged in recent weeks. The city’s planning commission granted the developer’s request to continue a hearing from last week until next month, with 26 public comments already submitted in opposition to the project.

A law firm representing the Griffin Ranch Homeowners Association also wrote a letter to the city opposing the project, which is included in an online petition that has drawn more than 300 signatures.

While the development (including the homes themselves) gained approval several years ago, La Quinta’s 2021 ban on new short-term rental permits except in specially zoned areas has prompted the developer to seek an exception. Currently, the Merv Griffin Estate is the only home on the parcel allowed to operate as a short-term rental.

Allowing additional short-term rentals on the Estates at Griffin Ranch would generate roughly $2.1 million annually in transient occupancy tax revenue, along with about $1 million in development impact fees, per a fiscal study conducted by a consulting firm as part of the developer's proposal.

The developer, Griffin Ranch Investors LP, held some outreach meetings in the weeks leading up to the Jan. 9 planning commission meeting, but Mark Majerovic, a representative of the ownership group, told the commission the turnout was “not very fruitful” amid the holiday season.

“In light of the recent comments we've received and letters we’ve received, we very much would like to take the proper time to approach it correctly and address everybody's concerns,” Majerovic said. “Some good questions have been asked, and we'd like to formulate some good responses in return and take the time necessary to do so.”

Majerovic said the ownership group planned to set up a town hall meeting with people from the surrounding community to discuss the project ahead of next month’s meeting. Majerovic did not respond to a request for comment on those next steps.

Concerns over noise, traffic, property values

Before the commission delayed its decision, however, several Griffin Ranch residents offered their views during the Jan. 9 meeting. Thomas Hansen said the application to allow for short-term rentals was “completely inappropriate” and would disrupt the community’s quality of living.

“Griffin Ranch properties range from $1.5 to $3 million,” Hansen said. “People have their life savings invested in this. I think that's going to be very detrimental to that, as short-term rentals are not consistent with strong property values in this area.”

Other residents raised concerns about whether the neighborhood could handle the parking necessary for 78 short-term rentals, which would be capped at two people per bedroom, plus one extra.

“I am concerned about the occupancy, but more importantly, I'm concerned about the overall thing,” resident Chuck Gilfoy told the commission. “I live next door. I moved down there specifically for the reason of getting away from short-term rentals. I lived in Indio at Montage.”

Some were also critical of the existing Merv Griffin Estate, saying it already causes headaches for neighbors when it hosts large gatherings, such as parties during the Coachella music festivals. Those comments echoed the Griffin Ranch HOA’s letter to the city council, which said the proposal to allow the rentals “will only exacerbate these existing problems while also creating entirely new, avoidable issues.”

“Instead of only having significant issues with noise and traffic during Merv Griffin Estate events, these issues will now become a constant as a stream of short-term and transient renters who have little care for the Griffin Ranch community move in next door,” wrote the lawyers representing the HOA.

With the continuance granted, the planning commission will decide during its Feb. 13 meeting whether to recommend the modified development agreement to the city council.

Tom Coulter covers the cities of Palm Desert, La Quinta, Rancho Mirage and Indian Wells. Reach him at thomas.coulter@desertsun.com.

This article originally appeared on Palm Springs Desert Sun: Neighbors fighting plan for 78 short-term rentals in La Quinta