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CBS 2's Elizabeth Hur contributed to this report.
NEW YORK (CBS) ― After more than seven hours battling what the fire commissioner called an "especially difficult fire," firefighters declared a seven-alarm fire in the abandoned Deutsche Bank Building under control. Fire Commissioner Nicholas Scopetta said the fact that the building was under demolition made the work all the more arduous. Two firefighters died battling the fire.

"Today's events really are another cruel blow to our city and to our fire department," Mayor Michael Bloomberg said. He said the fire had "expanded our loss."

Bloomberg sought to reassure residents that the asbestos and other toxic substances in the building, dumped there in the World Trade Center disaster, likely did not present a significant health risk. Air-quality tests so far showed no danger, he said.

Despite his reassurances, some officers worked with protective masks on, preferring to be safe, rather than sorry.

More than five dozen fire vehicles, with more than 270 firefighters, responded to the blaze as pieces of burning debris fell from the building to the streets.

"We heard this crashing," said Elizabeth Hughes, who saw the fire start from her rooftop deck across from the tower, already decimated by the Sept. 11 terrorist attacks. "And then a huge fire that went up three floors fast. It was massive. ... Oh my God! I can't even go in and get my cats."

Hughes called 911, grabbed some of her things and ran, she said.

The blaze began about a dozen floors up and burned on multiple floors at the building, steps from where 343 firefighters lost their lives in the 2001 terror attacks. Construction crews had already dismantled 14 of the building's 40 stories—reaching the 26th floor on Tuesday.

Some firefighters used stairs to reach the burning upper floors; others smashed out the building's windows to let in more air to reach the flames.

More than two hours after the blaze was first reported, it was declared a seven-alarm fire. Officials pushed onlookers further back from the building and set up a command post on the West Side Highway. Officials could be seen poring over a map of the area, and scaffolding on the sides of the building was aflame. Smoke was visible from midtown Manhattan and the New Jersey side of the Hudson River.

By late Saturday evening, nearby residents who had been evacuated from their homes were told they could return.

CBS 2 has learned the fire may have started after an electrical problem ignited some rubbish, but fire officials have not confirmed this.

The building at 130 Liberty St. has become a constant headache for redevelopers in the nearly six years since the attacks. The 1.4 million square foot office tower stood as a downtown Manhattan eyesore, contaminated with toxic dust and debris after the World Trade Center's south tower collapsed into it.

Efforts to dismantle the skyscraper were halted by a labor dispute last year, along with the ongoing search for the remains of attack victims.

More than 700 bones and fragments were discovered in the contaminated skyscraper from mid-2005 to June of this year, including some positively matched this year to a previously unidentified victim. The last bones found at the building were in March, leading city officials to conclude their search three months later.

There was another weeklong shutdown of work in May, when a 22-foot pipe fell through the roof of a nearby firehouse from the 35th floor.

Two years ago, redevelopment officials said the building contained excessive levels of seven hazardous substances, including dioxin and lead. As part of the tear down, a dozen air quality monitors were installed in the ar

(© 2007 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)