In 1999, water undermined some sections of the original dam and caused a breach, draining the lake to merely one-quarter its size.[3] The village sought and received state and federal grants to repair the dam and restore the lake, whose near-absence had hurt local business. However, the state Department of Environmental Conservation (DEC), the Conservation Commission's successor as regulator of dams, held up repairs while it considered whether to reclassify the dam as higher risk in case of failure, which could have raised the cost and forced a redesign.[4] After eventually getting approval from DEC and putting the project out for bid, a redesign of the dam that preserved its historic character, the village suffered another setback when the lowest bid came back at $1.5 million, almost twice what the project had been budgeted for.[5]