Posted on November 19, 2025
The Shell Rock River Watershed District Board of Managers last week voted to go out for bids for the final phase of dredging on Fountain Lake.
The vote includes the dredging of the east basin of Fountain Lake’s main bay and also calls for an option to include work in Bancroft Bay, though the outcome of that portion of the project hinges on an appeal with the Minnesota Department of Natural Resources regarding the permit for dredging.
Administrator Andy Henschel said the watershed board voted to structure the bid this way to give the district time to continue negotiating with the DNR on the dredge scope for Bancroft Bay as the appeals process moves forward, while still allowing critical work in East Main Bay to proceed.
Henschel said putting the project out for bid allows the district to get the project on contractors’ calendars and solicit better pricing for a spring 2026 start date.
“I believe this is an exciting time for the board,” Henschel said. He noted he also thinks the district is getting closer to a resolution for Bancroft Bay.
Active dredging in Fountain Lake began in 2018 with the project funded through the local option sales tax and state bonding dollars. Earlier phases of the Fountain Lake restoration project have focused on Edgewater Bay, West Bay and East Main Bay. Using a combination of $7.5 million in state bonding and $ 9.5 million in Albert Lea’s local option sales tax, the district has already removed more than 1.2 million cubic yards of sediment, deepening the lake and reducing the internal phosphorus that fuels harmful algae blooms, he said.
The district received an additional $9 million in state bonding to finish the project, which calls for removing roughly 650,000 cubic yards of phosphorus-laden sediment from the east basin of the main bay and Bancroft Bay. Of that amount, the goal is to remove 330,000 to 380,000 cubic yards from the main bay and 250,000 to 300,000 cubic yards from Bancroft Bay.
To make room for this material, the district contracted with a company in 2024 to clean out the first cell of the confined disposal facility at a cost of roughly $2.2 million. Adding in engineering and permitting fees to date, the district has invested about $3.3 million of the $9 million in bonding dollars to position the third phase for success, Henschel said.
“These efforts are already making a difference,” Henschel said of the dredging. “Deeper water and cleaner sediments mean better water quality, improved fish habitat and safer, more enjoyable recreation. That’s good for residents, local businesses and tourism. Completing phase three will mark the completion of a significant, long-term investment in the health of Fountain Lake and the vitality of our community, and allow us to shift our focus to Albert Lea Lake.”
He thanked the people of Albert Lea, the legislative delegation and its many partners for their continued support of the work.
“Fountain Lake is at the heart of Albert Lea’s identity,” he said. “It’s where we fish, boat, walk with our families and welcome visitors to our community.”
