In the early 1900s a lumber mill operated in Thatcher Bay located on the southeast corner of Blakely Island. Wood waste from the mill was deposited on the beach and in the intertidal area around the mill. Mill operations ceased in 1942, but wood waste contaminated sediments still cover approximately 1.8 acres. The Assessment phase of this project was completed in 2008. The Assessment looked at historic and current conditions, assessed the impact of wood waste in Thatcher Bay and examined restoration options. Sediment volume of the site was determined by evaluating the extent and depth of the wood waste by taking sediment cores. Additionally, pilot studies were conducted to characterize in situ sediment redox, organic composition, and sulfide impacts to nearshore flora and fauna. The multidisciplinary investigation identified the removal of wood waste from a water-based platform as the preferred alternative. Approximately 12,900 cubic yards of wood debris material will be removed from the beach at an elevation of approximately 8 feet above mean lower low water (MLLW) to depths in the nearshore of approximately -8 feet below MLLW. The wood waste contaminated sediment will be replaced with clean sediment suitable for forage fish spawning after removal of the wood waste is complete. A 30% design and cost estimate were completed for the preferred restoration option. A Cultural Assessment was completed and JARPA application submitted to local, state and federal agencies. As of the project end date the permit approvals received are: DMMO Suitability Determination, SEPA determination of nonsignficance, Shorelines exemption , and HPA issued. At the Army Corps, due to the ESA listing of three species of rockfish an individual ESA consultation was required. A Biological Evaluation is currently being prepared to meet this requirement. Once this ESA consultation is completed the Army Corps can proceed issuing their permit. In the mean time, SFEG has been actively seeking implementation funds and has authorized our consultant to proceed with final designs. Additional SRFB implementation funds have been secured, however additional funds are still needed. Ultimately, once implemented the Thatcher Bay Nearshore Restoration project will eliminate toxic sulfide contamination by removing wood waste, and restore nearshore intertidal and sub-tidal habitat suitable for forage fish spawning and rearing, specifically Surf Smelt and Sand Lance. The project will also improve foraging and rearing habitat for salmonids including ESA listed Chinook salmon, steelhead trout, and bull trout. Improved benthic conditions will increase the potential of establishing intertidal flora and fauna such as eelgrass.