Page 1 of 3 SETTLEMENT AGREEMENT 621 Apartments LLC, Roy Street Commons LLC, Eric and Amy Friedland, Raissa Renee Lyles (?621 Apts.?) and Seattle Short-Term Rental Alliance, Sea to Sky Rentals and Michelle Acquavella each ?led a SEPA appeal with the City of Seattle Hearing Examiner, challenging the Determination of Non-Signi?cance issued on April 24, 2017, for proposed short?term rental legislation The administrative appeals were consolidated under Hearing Examiner number?17-002 and 621 Apts. and SSRA (together ?Appellants?) and the City of Seattle (?City?) (together ?parties?) seek to settle their dispute related to the DNS. The parties hereafter agree as follows: 1. The City agrees that the revised bill as set out below on pages 2-3 of this agreement (?revised bill?) will be introduced for Seattle City Council (?Council?) consideration; 2. If the revised bill is successfully voted out of committee, Appellants agree to voluntarily dismiss consolidated Hearing Examiner appeal W-17-002 and 17-003 within 5 business days. 3. The parties recognize that, if the revised bill is adopted by Council, it would allow short term rental in all units of the Roy Street Apartments (permit and certificate of occupancy attached hereto; operated under Seattle Business License No. 789774) and units meeting the terms of Sections 6.600.040.B.1 and B3 below operated under Seattle Business License No. 586017. 4. The parties recognize that the Council legislative process cannot be limited by settlement agreement and this settlement agreement in no way limits how the Council may vote on pending or future legislation. Signed and acknowledged by: Page 2 of 3 621 Apts. SSTRA City of Seattle ?llet/LA Eric or Amy Friedland, Michelle Acquavella Tim Burgess Owner 621 Apts./Appellant Agent for SSTRA/Appellant Seattle City Councilmember Date: Date: C) 5 - Date: Revised Bill 6.600.030 De?nitions ?Short?term rental operator? means any person who is the owner or tenant of a dwelling unit established under Title 23, or portion thereof, who offers or provides the dwelling unit, or portion thereof, for short-term rental use. 6.600.040 License required B. Operators. It is unlawful for any person to operate as a short-term rental operator within the City without a valid short-term rental operator license issued pursuant to this Chapter 6.600. A short?term rental operator license permits an operator to offer or provide a maximum of two dwelling units, or portions thereof, for short-term rental use, except for the following: 1. An operator who offered or provided a short-term rental in the Downtown Urban Center, Uptown Urban Center, or the South Lake Union Urban Center, as established in the Seattle Comprehensive Plan (2016), prior to September 30, 2017, may obtain a short-term rental operator license allowing them to continue to operate those units and to offer or provide up to two additional dwelling units for short?term rental use, subject to the requirements of subsection 6.600.040.B.3. Page 3 of 3 2. An operator who offered or provided a short-term rental in any dwelling units within a multifamily building constructed after 2012 that contains no more than ?ve dwelling units established by permit under Title 23 and is located in the First Hill/Capitol Hill Urban Center, as established in the Seattle Comprehensive Plan, prior to September 30, 2017, may obtain a short-term rental operator license allowing them to continue to operate those units and to offer or provide up to two additional dwelling units for short-term rental use, subject to the requirements of subsection 6.600.040.B.3. 3. If the license applicant wishes to continue operating a short-term rental in a location described in subsections 6.600.040.B.1 or 6.600.040.B.2, the applicant must provide the Director with the following evidence of prior short-term rental use: a. A business license tax certi?cate issued by the Department of Finance and Administrative Services for the short-term rental use, in effect on September 30, 2017;and b. Records demonstrating collection and remittance of all applicable local, state and federal taxes within the 12-month period prior to September 30, 2017; and c. A registry identifying the dates the dwelling unit was used as short-term rental within the 12?month period prior to September 30, 2017.