A re-development company that has taken over Fort Frances’s dormant pulp mill property says the site has the potential for a $35-million cannabis production operation.

But the municipality — which would rather see another forestry-related mill go there instead — was decidedly lukewarm to the idea Tuesday.

A cannabis “operation would only use a portion of the (former) mill, leaving the rest unable to return to production,” Mayor June Caul said in a statement.

Caul added: “It would mean significantly less jobs, lower incomes and negatively impact the district’s economy by failing to use local fibre.”

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