Smoke can be seen billowing across the Granite City skyline.
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Witness Beata Baszczuk, 28, told police that Elizabeth Sweeney was angry with Neil Jolly and she had had "enough" of him.
The female driver was taken to hospital as a precaution.
In 2018, Against the Grain first opened its doors on Batchen Street. Since then, it has been a hit in Elgin town centre.
Communities across the region have been fighting to retain library services in towns and villages where buildings are at risk of closure.
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The 67-year-old who owned Banchory Lodge Hotel had battled pancreatic cancer.