The Serpentine Jarrahdale Shire Council has received a proposal from C&C Enterprises to restart operations at a Jarrahdale sawmill.
The mill at 87 Millars Road closed six months ago.
The proposal is to mill sawlogs provided by the Forest Products Commission from WA forests, similar to the previous business that operated there.
It would also perform a new function of processing residual waste from sawlogs production.
Mr Iannello said the mill would plague residents with noise and traffic problems and would harm land values and the environment.
He said the previous operation had used huge amounts of water to keep milling timber dampened, mainly sourced from Gooralong Brook.
He said this had reduced the brook to a mere trickle during summer and it could no longer support industry.
The company that proposed to restart operations at the old Jarrahdale sawmill in Millars Road said noise levels would be similar to past milling activities.
C&C Enterprises said the mill would provide jobs and local trade, and the new activity of processing waste would create alternative green energy fuels.
It also said that, subject to shire approval, it had agreements in place with site manager the National Trust, and wood supplier the Forest Products Commission (FPC), to operate for 10 years with the option to continue.
FPC South-West native forests manager Chaz Newman said the organisation had received a proposal from C&C Enterprises but it was still in the discussion stage.
He said the new waste processing activity that C&C was referring to was still in the development phase.
National Trust chief executive Tom Perrigo said the trust was working through final approvals.
He said the trust supported continuity of historical uses at its properties and he was pleased to be close to finalising details on the mill.
Serpentine Jarrahdale Shire chief executive Richard Gorbunow said officers had asked C&C to clarify whether it would use Gooralong Brook, and for further information regarding traffic.
The Shire council would make a decision when it had enough information to make an accurate and suitable assessment, and would inform residents of progress.
Mr Gorbunow said the Shire had only communicated with landowners within a 450m radius of the site, as the proposed activity was to be of a lower impact than the original sawmill’s.
Public submissions on the proposal closed yesterday.