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tax is expected to be levied for payment of the Bonds and interest thereon in the Bond Resolution. All Tax Increments will be pledged and appropriated to the payment of the Bonds and the interest thereon when due. In addition, such principal and interest will be paid from certain proceeds of the Bonds (capitalized interest) and interest earnings thereon. In addition, a portion of the Bonds (approximately $1,200,000) are expected to be issued as revenue bonds of the HRA or the City payable only from excess Tax Increment from the District remaining after the payment of the general obligation bonds. Such revenue bonds are expected to be issued to the owner of property in the Project Area to reimburse it for Public Redevelopment .Costs paid by such owner. 4. Bond Terms. The terms of the Tax Increment Bonds are expected to be as set forth below; however, the right is reserved to adjust any and all terms of the Tax Increment Bonds to secure the best interest rate obtainable and to insure that the entire principal of and interest on the Tax Increment Bonds will be paid when due from the sources specified in paragraph 3. The Tax Increment Bonds will be issued in one or more series, in the aggregate principal amount of $2,700,000, will mature serially over a period of approximately twenty-one (21) years from the date of receipt by the City of the first Tax Increment from the Tax Increment District, will be subject to redemption prior to maturity, will bear a.fixed rate or rates of interest from date of issue to maturity, • payable-semiannually commencing approximately six months after the issuance thereof, and will be sold at public or private sale. E. Determination and Use of Tax Increment. 1. District Eligibility as an Redevelopment District. Minnesota Statutes, Section 469.174, Subdivision 10 defines a "redevelopment district" as a tax increment financing district consisting of a portion of a development district which is 70% of the Parcels in which are occupied by buildings, streets, utilities or other improvements and 50% of the buildings are structurally substandard. Based upon.a report of Ulteig Engineers, Inc., Minneapolis, Minnesota attached hereto as Exhibit D, the HRA believes the District is a "redevelopment district" since the conditions set forth in the preceding paragraph are satisfied with respect to the District. 2. Original Tax Capacity. The Tax Capacity of all taxable property in the District as most recently certified by the Commissioner of Revenue of the State of Minnesota, being the certification made in 1991 with respect to the Tax Capacity of such property as of January 2, 1991, is $ . If the request for certification of the Original Tax Capacity is filed prior to the certification of the Tax Capacity of -8-