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. . . 2.2) The sale and issuance of the Bonds is hereby authorized pursuant to Minnesota Statutes, section 469.178 and Chapter 475. The Council has determined, based upon advice of bond counsel, that interest on the Bonds cannot be excluded from gross income for purposes of federal income taxation; therefore publication of a notice of the sale is not required. It is hereby determined that not less than twenty percent (20%) of the cost of the Property, as hereinafter defined, is estimated to be received from taxes levied upon the increased value of property within the TIF District; so that, no election under the provisions of Section 475.58 of the Minnesota Statutes is required. 2.3) The City has received an offer to purchase the Bonds from the Bank of Elk River located in the City at a price equal to the par value of the Bonds (Sixty Thousand One Hundred Dollars ($60,100)) and upon the further terms and conditions hereinafter set forth. 2.4) The sale of the Bonds lS hereby awarded to the Bank of Elk River. Section 3. Bond Terms, Execution and Delivery. 3.1) The Bonds shall be designated General Obligation Tax Increment (Taxable) Bonds, Series 1988B, shall be dated as of October 1, 1988, and shall bear interest from the date on which funds are advanced until paid, calculated from time to time upon the amount of the unpaid principal balance, at a rate of ten and three-quarters percent (10 3/4%) per annum. A single Bond shall be issued in the denomination of Sixty Thousand One Hundred Dollars ($60,100) providing for installments of principal becoming payable annually on October 1 in each year, commencing October 1, 1990, such installments to be paid at the times and in the amounts stated below: Date Amount October 1, 1990 $ 500 October 1, 1991 8,600 October 1, 1992 8,000 October 1, 1993 8,000 October 1, 1994 8,750 October 1, 1995 8,750 October 1, 1996 8,750 October 1, 1997 8,750 Accrued interest on the Bonds shall be payable semi-annually on April 1 and October 1 in each year, commenclng April 1, 1989. The principal of and interest on the Bonds shall be payable to the Bank of Elk River, at its offices in Elk River, Minnesota, or, as may otherwise be directed by written instruction from time to time provided by the holder of the Bond. 2 .