THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, August 21, 1996            TAG: 9608211001
SECTION: LOCAL                   PAGE: B3   EDITION: FINAL 
SOURCE: BY MIKE MATHER, STAFF WRITER 
DATELINE: VIRGINIA BEACH                    LENGTH:   32 lines

INVESTIGATORS CALL FIRE AT CONSTRUCTION SITE ARSON ALL OTHER CAUSES IN AUG. 6 BLAZE WERE RULED OUT; THERE IS NO PRIME SUSPECT.

The Aug. 6 blaze that heavily damaged the unfinished Sunstates House retirement apartments on Shore Drive was arson, fire investigators said Tuesday.

Investigators reached the conclusion simply because they had eliminated all accidental causes, Fire Department spokesman Mike Wade said.

Wade said forthcoming lab results may tell investigators more about what was used to spread the fire. Wade said investigators don't have a prime suspect.

The four-story building's size and proximity to a shopping center were criticized by some neighboring business owners and city leaders, although the City Council and the Seashore Shoppes merchants' association endorsed the project.

Now, in the fire's aftermath, some city leaders have again expressed concerns about allowing developers to rebuild the structure near the intersection of Shore Drive and Great Neck Road.

Fire officials first estimated the loss at around $3 million. Wade said the fire began in the west wing of the U-shaped building and spread quickly. Flames that night belched more than 100 feet from the roof. Most of the complex was reduced to charred timbers. No one was hurt.

A reward of up to $6,000 is available for information on who set the fire. Investigators ask anyone with information on the crime to call 427-0000.

KEYWORDS: ARSON by CNB