A new Mitchell water tower featuring the Corn Palace logo could rise above Interstate 90 by next summer.

The Mitchell City Council this month awarded the project to CB&I Inc., of Oakdale, Minn., which submitted the low bid of $1.756 million.

The project on the north side of the interstate will be funded by a State Revolving Fund loan that will include 15 percent principal forgiveness thanks to the federal economic stimulus package.

Work on the million-gallon tower is expected to begin this spring.

The project includes disassembling and removing an 8-year-old, 300,000-gallon water tower located nearby.