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Page 2 April 14, 1975 Mayor Johnson inquired if any of the Councilmen were interested in attending the League of Minnesota Municipalities convention June 11 through 13. Council- men Baumgartner, Shelquist and Mayor Johnson will be attending. Mayor Johnson presented a notice from the League of Minnesota Municipalities regarding distribution of gross earnings taxes to local units of government. There are two different proposals being made for distribution of these monies to local units of government. The first will apply 100% of the monies as a replacement of property taxes in the levy limitation formula. The second will apply 50% as tax replacement and 50% as additional revenue which is outside the present levy limits. MSP (Baumgartner - Shelquist) to adopt Resolution 671 supporting State legis- lation to distribute gross earnings taxes to local units of government. Mayor Johnson recessed the regular meeting and called the special hearing for Richard Carlson's subdivision to order at 8:35 p.m. Mr. Carlson stated he intended to subdivide his property into six lots and build $40,000 to $60,000 homes depending on what the people desire to have built at the time. Mayor Johnson inquired about the utility easements. Mr. Carlson said NSP has not decided whether to go underground or overhead. Mayor Johnson asked Mr. Carlson if he thought it would look better to have underground facilities in the area considering the value of the homes. Mr. Carlson agreed and would like to see the underground facilities installed, but he said NSP would have to make the final decision. He thinks NSP is going to put in overhead services in the area. However, Engineer Bearden felt NSP was in favor of installing underground utility services. Mayor Johnson asked Mr. Carlson if he would be willing to grant the City a ten foot front easement to allow for the utilities if NSP should decide to go under- ground. Mr. Carlson said he would be willing to do so if NSP decided on under- ground utilities. Attorney Meyers indicated that the easement should have been part of the plat. Mayor Johnson asked the Engineer if there were any low spots on this land. Engineer Bearden stated he was not aware of any low spots and thought the land was quite high in this area. Mayor Johnson asked what kind of homes he would be putting in the area. Mr. Carlson stated he had several model homes. He stated he had taken a soil - boring test which shows the water table and indicated he would be able to build a 12 course basement. Mayor Johnson asked Engineer Bearden if he thought there would be any problem with these size lots as far as drainage. Engineer Bearden stated no. He said the Council should require a five foot utility and drainage easement on the far west three lots.