Palo Alto's building inspectors have determined that three of the four businesses that were damaged in a blaze on Middlefield Road last week are no longer safe to enter or occupy, a ruling that means the buildings face an extensive remodel or reconstruction.

The fire, which began late at night on Feb. 1 and spilled into the early hours of Feb. 2, caused extensive damage to a shopping plaza in the 3100 block of Middlefield Road, near Loma Verde Avenue. The fire is believed to have originated at AJ's Quick Clean Center, which is in the middle of the property, and spread to Bill's Café, which is adjacent to the laundromat. Both businesses have been tagged with a red placard, indicating they are not safe to occupy. Philz Coffee, which is on the other side of the laundromat, sustained less damage from the fire but was also red-tagged, according to the city.

The fourth business on the site, Palo Alto Fine Wine & Spirits, was tagged with a yellow placard, which allows entry to secure products and prevent further damage, the city's Chief Communications Officer Meghan Horrigan-Taylor said in an email. The fire investigation, she noted, is still ongoing and building inspection reports are still being developed.

"Since the walls are intact, and a portion of the roof also, it is possible the building can undergo an extensive remodel," Horrigan-Taylor said. "Building Officials are not in a position to direct complete demolition at this time. They will periodically review the site for safety and encourage a site cleanup, possible engineering evaluation, and a path forward to restoring the site, in accordance with the Palo Alto Municipal Code."

She also noted that the city's economic development staff are in contact with the businesses to assist them.

While Philz Coffee did not experience the type of extensive fire damage that befell Bill's and AJ's Quick Clean Center, the businesses share an attic and a roof. Firefighters said the fire was spreading through the attic before they were able to knock it down in the early hours of Feb. 2. While the two businesses in the center of the plaza were clearly destroyed by the blaze, it was not clear immediately after the fire whether Philz could be salvaged.

The city's determination to red-tag Philz ensures that the popular coffee shop will not be reopening its doors any time soon.

Council member Ed Lauing said Monday that he had visited the site to express his condolences to the business owners. He said the owners of Philz and Bill's were "trying to make the best of it."

"There's going to have to find new spaces," Lauing said at the City Council meeting. "And if they do, obviously it will be grandfathered in for construction and so forth, but hopefully we'll help them in any way possible to get back in business as soon as possible."