Palace's fire deliberately lit

POLICE say the Palace nightclub blaze was deliberately lit, and believe more than one person was involved in starting it.

POLICE say the Palace nightclub blaze was deliberately lit, and believe more than one person was involved in starting it.

A police spokesman said there were several places within the complex where the fire appeared to have started.

Detective Senior Sergeant Phil Hubbard said Metropolitan Fire Brigade (MFB) examiners and an arson chemist found evidence of several separate fires ignited inside the building.

"We have identified at this stage there are about four seats of the fire, which indicates suspicious circumstances, so our investigation will be focused in relation to further examination of the fire scene itself," Snr Sgt Hubbard said today.

"We've identified a seat of fire adjacent to the stair area and there's been another two areas that indicate a point of origin on the main (street) level," he said.

"And also there's a point of origin underneath, which is the old Twister nightclub.

"We are going to look at this to see if there is the potential for someone to have seen it as an opportunity to destroy the building in that fashion."

Snr Sgt Hubbard said up to three people could have been involved in starting the blazes.

Security guards had patrolled the area and carried out systematic checks at The Palace several times, day and night, Snr Sgt Hubbard said.

"We have spoken to the security guards and we will continue to liaise with them to see if we can get additional information," he said.

It is believed the guards had just completed a patrol of the property and police believe it is possible anyone involved in starting the fire was watching them.

Detectives have interviewed several previous tenants of the building and those who have access to the property.

"We look at all people who have been involved with the building in the past," Snr Sgt Hubbard said.

The Port Phillip Council has said it will upgrade security at the site, including the addition of closed circuit cameras. 

It took crews from 16 fire trucks several hours to put out the fire.

The Palace was handed to the State Government last month after an acrimonious legal battle with the complex operators.

The fire came only weeks after police began investigating vandalism there.

About 70 firefighters were called to the former live music and dance venue about 3.30pm yesterday when smoke began billowing from the roof.

It is understood some demolition work began yesterday on the building.

Police were investigating vandalism after several fires were lit, windows broken, walls destroyed and big holes left in the dance floor since it closed in June.

The destruction had led the council to hire security guards to patrol the site and fence it off.

The Palace has hosted some of the biggest names in rock music and was closed down after a bitter two-year legal battle with its former leaseholder, Bradto.

Firefighters had feared the blaze would spread to the beautiful Palais Theatre next door, but it was unscathed.

Metropolitan Fire Brigade Assistant Chief Fire Officer Michael Walker said fire was coming from the Palace's roof when firefighters arrived.

"We found the building, which is currently under demolition we believe, had extensive fire in the front portion of the building," Mr Walker said.

". . . the fuel load has come from rolled-up carpet and a lot of chipboard that has come out of the ceiling and roof space."

No one had to be evacuated from the building, though pedestrians too close to the fire were moved away.

Asbestos was found in the building, so firefighters donned breathing apparatus.

Arson Squad detectives arrived last night to begin their investigation into the fire's cause.

Yesterday Port Phillip Council mayor Janet Bolitho said the council, which took over management of the site from the State Government on July 1, would assess the building's condition before making a final decision on demolition.

"It's a shame the Palace has been destroyed like this," she said.

The council had hoped to use it as a live music venue for another year until development began.

The $300 million triangle development is due to start by next June, with construction set to be completed in 2010.

It will include entertainment venues, including a Ministry of Sound dance club and The Basement jazz club overlooking the waterfront, and the heritage-listed Palais theatre next door.

The fire caused traffic congestion in St Kilda.

Andrew Thompson, 56, was enjoying coffee at nearby Acland St when he saw the thick smoke billowing from the complex.

"All I could see was these great big plumes of black smoke," Mr Thompson said.

"I actually thought it was an oil tanker on fire in the bay. There was no noise, no explosions, just a big mushroom cloud of smoke blanketing the area."

Resident Jackson, 14, said he wasn't surprised the building caught fire.

"They've been chucking all sorts of things inside there," he said.