From what LITTLE I know, there were restrictions placed on the golf course. FAzio designed around them, but had trouble getting a cart path in, with the restrictions the coastal commission put in place. So, it was decided (just over 5 years ago) that the forest Course would be walking only.
I'd suspect that it is the housing that is the contentious issue and this enviro-stuff is smoke.
Either way, the Pebble Beach co. Should be allowed to do what they want. They are the ones who would suffer from any long-term negative impacts, not some commisioner.
Also, there was talk of utilizing Spy's clubhouse as POS for both the Forest and Spyglass Hill. If that were to become true, they might have to move a road or two, but in all likelyhood, they'd just ask the walkers to walk across the street. That's where the course could traverse either towards the lodge and polo fields, or down the dunes towards the ocean, almost directly on a line with the house Bob Huntley referenced with the mini greens.
To giver a general area where All of this area is, it's between the backside of the 3rd tee at Spyglass Hiill, and the forest behind and to the right of the fifth at CPC.