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E. Exemptions Finally, a Measure 49 claim is not valid if the challenged regulation falls within one of the exemptions under the Measure. Regulations adopted to protect the public health and safety, prevent nuisances, or comply with federal law are exempt under Measure 49, even if they otherwise constitute use that the residential and the fair market of property. Regulations that (1) restrict or prohibit the use of the property for selling pornography or performing nude dancing, (2) plan and rezone land for industrial zoning to be included in the UGB, or (3) plan and rezone land already within a UGB to industrial zoning, are also exempt under Measure 49. Finally, Measure 49 does not apply to regulations that were enacted before the Claimant(s) acquired the property. The regulation at issue in this claim does not fall within any of these exemptions. IV. Conclusion and Recommendation Based on the analysis set-forth above, the City Manager recommends that the City Council conclude that the subject Measure 49 claim is valid. In lieu of compensation, the City Manager recommends that the City Council waive the height limit provisions of EC 9.2751(17)(c)9. to the extent such waiver is necessary to offset the reduction in fair market value. The scope of the City recommended waiver addresses only the applicability of EC 9.2751(17)(c)9. to the conversion of the existing structure to a lawful detached secondary dwelling. The recommended waiver does not address the applicability of any other provision that might preclude such conversion. Further, the waiver of the height limit in EC 9.27.51(17)(c)9. does not allow further modifications to the existing structure that would increase the height of the structure above the height that existed on the date that filed their Measure 49 claim with the City (February 24, 2016). Because the City Manager is recommending that the Council grant the a waiver of the height limitation in EC 9.2751(17)(c)9., and Measure 49 authorizes a public hearing by the City Council in such instances, this claim has been scheduled for a public hearing on November 14, 2016. Page 5 REPORT AND RECOMMENDATION OF THE CITY MANAGER