Fire at Capitola Village on Christmas morning, potentially hazardous smoke in the area, explosion heard by neighbors, people displaced

CAPITOLA, Calif. (KION-TV) – It was some scary moments for many in Capitola Village Christmas morning. People who live in the area say they heard an explosion just before the fire broke out around 6 a.m. Wednesday morning. At least three people have been displaced as a result of the fire, according to investigators.

Smoke could be seen coming out of the structure on Monterey Avenue.

There are no reported injuries. The cause of the fire is under investigation. Fire crews are working to put out hot spots and PG&E is on scene, according to police.

Police are asking people to avoid the area and stay upwind of potentially hazardous smoke moving towards the beach.

We have a reporter on the scene and will have more updates as they become available.