At the American Legion post in Farmington, disappointment sank in on Friday after a jury found a suspect not guilty in a $1.3 million fire caused by a carelessly discarded cigarette in 2008.

But for the accused, it was a day of vindication after years of insisting he was innocent.

A Dakota County jury acquitted Kevin Krause, 41, of Rosemount, of negligently starting the blaze that closed the post for eight months and put more than 40 people out of work.

Prosecutors had alleged that Krause tossed a cigarette butt into a cold-air return ventilation duct, igniting dust and debris inside the wooden duct and causing a fireball and blaze that erupted just before bar closing on Feb. 10, 2008.

He faced a felony charge based on negligently causing a fire. Assistant County Attorney Nicole Nee had been prepared to seek restitution of the $1.3 million, which includes $900,000 paid by insurance to the Legion.

Krause wiped away tears during closing statements, then was elated after jurors deliberated only an hour.

"I'm happy as can be. I've been dealing with this for two-and-a-half years," he said moments after the acquittal in Hastings.

The fire upset many in Farmingon, where police were quick to identify Krause as a suspect, and the community was quick to blame someone, Krause's attorney, public defender Lisa Janzen, told jurors.

The fire was an accident and Krause is innocent, she said. There was no evidence directly linking Krause to the fire, she said, and Legion surveillance videotape showed other people in the same bar area where the fire started between 11 p.m. Feb. 9 and 1 a.m. Feb. 10.

Three cigarette butts and a fourth item, possibly another butt, were recovered in the duct. One was charred so badly that experts could not test it for DNA. Two others contained DNA of unknown smokers who had also used the shaft as a wastebasket, an expert testified. Krause's DNA was not found.

Ashtrays had been removed from the bar after a statewide smoking ban went into effect.

A post manager testified that after the fire, Krause told her he wanted to apologize for people having lost their jobs.

To convict Krause, the state needed to prove that not only did he cause the fire, but that he did so with gross negligence.

Kevin Heinz, 33, of Eagan, was an alternate juror who was dismissed before deliberations. As he left the courthouse, he said he didn't know how he would have voted.

"It was very close either way," he said. "Both sides had good points. It really is up to how you interpret the evidence."

Joanne Meide, assistant manager of the post, was among those disheartened by the verdict.

"You can't put a number on the losses because of what could have been: lost sales, lost business, lost charitable gambling," which meant the post was unable to contribute to charities, she said.

Also, wedding receptions and other events had to be relocated, Meide said.

Despite the acquittal, she's among those who still believe Krause caused the fire, she said, noting that he was seen smoking that night.

"There should have been some kind of restitution," Meide said. "He was 40 years old. He should have known better. He was just trying to get away with something."

Krause said after he was charged, he was fired from his job at a restaurant, and he's had a tough time finding another job. And he moved out of Farmington.

"I couldn't go anywhere without harassment," he said.

Joy Powell • 952-882-9017