Paul Terrence McCurdy, 57, appeared in the Dunedin District Court by video link from prison today where his counsel Andrew Dawson entered a not guilty plea to the arson charge.
The defendant remained standing during the hearing and would not acknowledge the judge.
Firefighters rushed to the Phillips St property on October 27 and there were initially fears homeless people may have been squatting inside.
Those fears were allayed, though, when the inferno were extinguished and the scene was cleared.
The derelict building was in the process of being demolished after 51-year-old Christopher Paul Bonisch was killed in a blaze there last year.
However, work on the site stopped in September after WorkSafe issued a prohibition notice due to safety concerns.
Neighbour Lance Dyke said he alerted emergency services to the fire early on Friday morning after hearing a big “bang”.
The heat caused windows of his home to crack and paint to blister.
The entire back of the burning building looked like a wall of fire, Mr Dyke said.
Arson where danger to life is likely to ensue carries a maximum prison term of 14 years' imprisonment.
No bail application has yet been made on McCurdy's behalf.
Judge Jim Large remanded him in custody until February.
