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Capital of Bavaria and the third-largest city in Germany; situated on both sides of the Isar River, north of the Alps. Henry the Lion, duke of Bavaria, established Munich in 1157 as a mint and market for Benedictine monks from Tegernsee. It suffered declined during the 17th century under the Swedish occupation and the plague epidemic of the Thirty Years' War. It revived under the Bavarian king Ludwig I, whose building and urban planning activities defined the character that the city has today. The city witnessed the rise to power of the Nazi party in the 1920s and 1930s, and was heavily damaged in World War II, when Allied bombing destroyed about 40% of its buildings. Still, a great deal of historic architecture survives, much of its rebuilt or restored, including the church the Frauenkirche, built 1468-1488. The city boasts seven old city gates, and many fine building built in the 19th century under Ludwig I. Munich is an active cultural center for the whole of Europe, with many libraries, theaters, museums, art galleries, and concert venues. It has several of the largest breweries in Germany and is renowned for its annual Oktoberfest celebrations. Light industry and tourism are major economic activities. The 2004 estimated population was 1,241,100.