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County fire officials say they are making progress in determining how the fire that destroyed historic Chestnut Lodge began last week.

Pete Piringer, a spokesman for the county's Fire and Rescue Service, said investigators are following up on some "pretty good leads" they obtained Friday evening in downtown Rockville when firefighters and officials canvassed the area. They spoke with dozens of residents and handed out hundreds of fliers asking for information about the incident.

"We're very encouraged by some of the information they got," he said.

Authorities have said they are looking for a group of three to four teenagers or young adults who were seen or heard near the building, at 500 W. Montgomery Ave., in the early morning hours preceding the blaze June 7.

Fire officials have stopped short of calling the incident arson, but said they know the fire was caused by a person or persons.

When authorities arrived at the scene around 3 a.m., the six-story building was fully engulfed in flames, Kenneth I. Korenblatt, battalion chief for the Montgomery County Fire and Rescue Service Explosive Investigations Bomb Squad, said.

It took at least four hours and approximately 95 firefighters to extinguish the two-alarm fire, he said. The roof collapsed into the basement about a half hour after firefighters arrived.

Officials from Rockville's Environmental Management Office said they have found lead paint chips from the building, which came off during the fire, in the yards surrounding Chestnut Lodge.

Residents who find pieces of paint are advised to bag and throw the chips away and keep young children and pets from ingesting them. They urge those who find a large number of pieces in their yard to get their soil tested for contamination.

Mark Charles, director of Rockville's Environmental Management Office, said most of the lead chips have been washed away by rain and he does not think there is "any more immediate health threat or environmental concern."

Chestnut Lodge, which opened in the spring of 1889 as the luxury Woodlawn Hotel, remained a hotel for less than 20 years before it was purchased by Dr. Ernest L. Bullard, who turned it into a sanitarium. The property remained a private hospital for many decades, changing owners a few times until it was bought by Chestnut Lodge Properties Inc., a division of Chase Communities.

The company is converting the property into houses. The building was going to be turned into seven condominium apartments.

Rob Baker, vice president of Chestnut Lodge Properties, said Tuesday the company is still reeling from the fire and has not yet decided if it will build where the structure stood.

"We don't know," he said. "There are a lot of people involved and right now we're focusing on the public safety aspect by demolishing the building."

The building should be down by the end of next week at the latest, Baker said.

The city will hold an event in remembrance of the historic landmark 6 p.m. Monday before the City Council meeting in city hall, 111 Maryland Ave. Residents are encouraged to share their favorite memories of Chestnut Lodge in council chambers and view a slideshow depicting its history, said Jenny Kimball, assistant city manager.

The public is asked to call the county's arson tip line at 240-777-2263 with information about the incident.