The fire is believed to have been deliberately started
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Police investigating a fire at a derelict youth club have arrested a 33-year-old man.
About 150 people spent the night in an emergency centre in Taunton, Somerset, after being ordered to leave their homes at 2100 BST on Wednesday.
The fire, at the former Taunton Youth and Community Centre in Castle Street was reported by staff at a nearby supermarket at 2040 BST.
Five fire crews were called in, but had to withdraw when they discovered the building contained significant amounts of asbestos.
They had to set up unmanned hoses to continue fighting the flames from a safe distance.
Because of the asbestos in the smoke we had to evacuate some people to a nearby school.
Spokeswoman for Somerset Fire Brigade
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Some 200 homes downwind of the fire were cleared and other residents were told to stay inside and keep their windows closed.
But the Somerset Health Protection Unit later announced little or no asbestos fibres had been released into the atmosphere as a result of the fire.
Those living near the centre were given the all-clear to return to their homes.
A spokeswoman for Somerset Fire Brigade said: "Asbestos was involved in the construction of the building.
"Because of the asbestos in the smoke we had to evacuate some people and they spent the night in a nearby school."
On Friday, police arrested a Taunton man on suspicion of arson after information was received from members of the public.
The man was released on bail until 23 May.