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State fire marshal: Hailey office building blaze was arson

Fire Marshal Knute Sandahl said the owners are “devastated” by the fire.

BOISE, Idaho — A fire that tore through an office building in downtown Hailey last week is being investigated as arson, according to state Fire Marshal Knute Sandahl.

Eleven engine crews from five different fire departments responded shortly after 5 a.m. on March 16 to a fire at the Croy Street Exchange Building.

Hailey Fire Chief Mike Baledge told KTVB the building was fully engulfed in flames went he arrived on scene. He said the building had been under renovation and was stripped down to the framing, causing the fire to spread quickly.

Sandahl says the state is working with the Bureau of Alcohol, Tobacco and Firearms in their investigation. Right now, they are continuing to follow up on leads. He says they are interviewing some “persons of interest” but he would not provide any more details. Investigators are also taking a look at surveillance video from people who work and live nearby.

The commercial building is located at the corner of River and Croy streets.

Baledge told us the building was to have shops on the first floor and residential housing on the second floor when complete.

Sandahl said the owners are “devastated” by the fire. It's unknown if they plan to rebuild.

The cause of the fire remains under investigation.

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