There are certain regulations that must be followed when dealing with shorelines. If you do not know whether this channel is overseen by the city, county, or state, first contact your city about local regulations. Many times you are not allowed to add sand or rocks to the shore, even though the intent is to discourage erosion.
If you are able to proceed, here are several live links that will help you design, maintain, and plant your shore:
Shoreland Landscape Design, Maintenance, and Management to Protect Water Quality
Contents:
Watershed Education - Provides an overview of what watersheds are and how activities in them impact water quality.
Vegetative Buffer Zones - Looks at what vegetative buffer zones are and their function in the landscape.
Shoreland Design - Addresses design issues specific to waterfront property. Includes site analysis and creative problem solving.
Plant Identification and Selection - Provides references to guides for the identification and selection of common aquatic plants and upland native plants appropriate for use in buffer zones.
Shoreline Planting and Buffer Zone Installation - Outlines steps to prepare a site for planting, discusses erosion control techniques, and gives tips on plant establishment.
Landscape Maintenance and Management - Discusses low-input lawn care practices, including phosphorus-free fertilizers, aquatic plant management, and landscape maintenance in urban watersheds.
Shoreland Landscaping Series: A Guide to Natural Landscaping and Revegetation For Enhancing Lake Quality
http://www.extension.umn.edu/distribution/naturalresources/DD7357.html
This is a Web sampler - Part 1 of the series is available: Natural Shoreland Landscaping
Caring for Shoreland Lawns and Gardens: Shoreland Best Management Practices
http://www.extension.umn.edu/distribution/naturalresources/components/DD6946i.html
Native Plants for Sustainable Landscapes: Establishment and Management of Lakeshores and Gardens
http://www.extension.umn.edu/distribution/horticulture/components/DG7447b.html
Plants On the Edge - Minnesota Flora For Shorelines
http://www.extension.umn.edu/yardandgarden/YGLNews/YGLN-June1500.html#edge
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horticulture, minnesota, shoreline, erosion