The fire was reported out about 1:30 p.m. Brenda Armes, owner of the Old Salty restaurant, said workers in businesses evacuated during the fire were allowed back in by 1:45 p.m.
Also damaged in the fire was Frank’s Pizza, which is next door to the arcade, as well as an adjacent henna tattoo shop and a souvenir shop.
The arcade and three attached souvenir shops are owned by Yoav Kohavi, who said the businesses were his livelihood.
Mayor Dan Wilcox said the fire started in the arcade and spread to a vacant apartment above. Wilcox said he thought the arcade can be repaired and reopened.
Depending on how damaged the structure is, the state may have jurisdiction over the repair process, according to Michele Walker, a spokeswoman for the N.C. Division of Coastal Management.
“From what I can gather, the arcade is part of a larger structure that contains other shops, and most likely this will fall under our 50 percent rule for damaged structures,” she said. “If the total structure is less than 50 percent damaged, then it is considered repair, not replacement, and they can repair without a CAMA permit.”
The town building inspector makes that call, Walker said, and had not made an official determination as of Thursday afternoon.
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