The sawmill was back in operation by 1870 and doing good work, but Fayette’s sawmill burned in 1871 and was rebuilt the following year. In its basement shops, carpenters assembled wagons and prepared materials used to build barges that carried iron ore from Escanaba to Fayette. Local businessmen such as Henry J. Bebeau leased the mill from the Jackson Iron Company and agreed to provide lumber at a reasonable and fair price.