VIDEO> KREM 2 News Report

SPOAKNE -- A year after a massive fire, Whitley Fuel says it is still at odds with the City of Spokane about how to rebuild.

Most of their fuel depot was destroyed by what investigators call an arson fire.

The fire caused about 20-million dollars in damage so it's no surprise Whitely wants to get back up and running as soon as possible.

KREM.com

The fireball that exploded from Whitley Fuel in North Spokane.

The problem is the rules have changed since it first moved in here in 1923.

This appeal filed by Whitley just two weeks ago accuses the Spokane City Planning Office of making several wrong decisions that are standing in their way of rebuilding on this 44,000 square foot site in East Spokane.

In June, the planning director sent this letter to Whitley detailing concerns about storing and distributing fuel oil on the site, just as it had for decades.

The planning board's point: More than 60% of the site was destroyed by the fire.

Therefore anything rebuilt has to conform to current zoning laws. In 2005 the site was zoned as light industrial

Now, storing and selling petroleum is considered "high impact use" which requires a 600 foot buffer-zone from homes.

"Such materials have to be kept at least 6-hundred feet from the boundary of a residential zone."

Whitley Fuel is just 300 feet from a neighborhood.

The company says planners are wrong in considering fuel lubricants as high impact.  Barring them from rebuilding their warehouse "is inconsistent with similar warehouse uses located within the city limits." these decicions are "depriving the appellant (Whitley fuel) of the ability to develop this property."

In just the last few days, the hearing examiner set an appeal date to hear from both sides.

That meeting is set for august 5th.