Police and firefighters arrived at the Hoxton Park road premises around 12.35am this morning and after 100 firefighters and three aircraft worked to control the blaze, only one building at the rear end of the property could be saved.
An arson squad has been called in and the fire is being treated as suspicious. An intruder alarm was set off before emergency crews arrived at the scene and the fire is believed to have started in the canteen. No one was injured.
The majority of the chambers are considered a total loss, with many important council documents and staff personal belongings irretrievable.
Staff will work from home, out of local libraries and at the Powerhouse Museum in coming days with no clear target for when the building will be up and running.
Damage is estimated to be worth $20 million and Liverpool Mayor Wendy Waller has said there will be a delay in processing development applications.
Anyone who may be able to assist the investigation is urged to contact Liverpool Police via Crime Stoppers on 1800 333 000.
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