This potential project is located in Haley Lagoon. Haley Lagoon is a barrier estuary fed by three freshwater streams near Dutcher Cove in Case Inlet. This project was identified by the 'Strategic Identification of Areas and Projects for Nearshore Restoration throughout Key Peninsula-Gig Harbor-Islands Watershed, WRIA 15, Washington' report prepared by the South Puget Sound Salmon Enhancement Group. It was also identified and targeted as one of six near-term restoration projects, and developed with detailed pre-project plans including 30% engineering designs.

Erosional forces from the tidal channel coupled with wave energy pose a threat to existing cabins to the north of the lagoon channel. To mitigate this effect, cabin landowners have re-routed the channel numerous times and hard-armored the shoreline. The project objective is replace two bulkheads adjacent to the stream channel with subsequent beach nourishment to the eroded beach face and former stream channel, in order to eliminate the stream channel disturbance and to alleviate the effects of tire/filter fabric and rock bulkheads.

A report that develops two soft shore protection alternatives, that more closely mimics the natural form of the beach, has been prepared by Coast and Harbor Engineering (November 2010).