A FIRE, THAT DID 35 THOUSAND DOLLARS WORTH OF DAMAGE TO A VICTORIAN-STYLE SANTA CRUZ BUILDING, IS THOUGHT TO HAVE BEGUN AT AN ON-DEMAND WATER HEATER OUTSIDE THE STRUCTURE. THE 2:30 A.M. TUESDAY MORNING FIRE OCCURRED ON THE 300 BLOCK OF LOCUST STREET. ALL OF THE BUILDING’S OCCUPANTS WERE ABLE TO GET OUT SAFELY.