 The Minnesota DNR has denied a permit for a Red River diversion channel around the Fargo area, but backers say it should not halt the project. The permit to build the dam to hold back water during serious flooding in the flood prone Red River Valley was considered to be the final hurdle for construction of the $2.1 billion project. Fargo Mayor Tim Mahoney says he's surprised by the decision, but believes the Army Corps of Engineers still has authority to move forward with it. Minnesota DNR Commissioner Tom Landwehr says the permit was rejected because there are better options for flood control and there's a lack of consistency with state and local plans. He says it doesn't contain proper remedies for upstream impacts. Now the 30-mile long diversion channel would have required a massive area upstream of the two cities that would be flooded in times of high water. Minnesota officials said Minnesota would bear that burden. Landwehr says the project should not proceed as proposed. Minnesota Governor Mark Dayton said in a statement today that he supports the DNR decision. Dayton says while 60% of the lands newly flooded by the project would be in Minnesota, Minnesota would receive only 14% of its benefits. Dayton says North Dakota would receive 86% of the benefits while hosting only 40% of the newly flooded land. If you've enjoyed this segment of Lakeland News, please consider making a tax-deductible contribution to Lakeland Public Television.