Walls on a chimney

[pmacedo]

I have a cape cod with chimney that runs up through the middle of the 2nd floor room. I am putting in a bathroom that requires me to take out an existing closet.
So, because of the lack of storage, I was going to wall in an area around the chimney. I was able to get a building permit, however they said that walls up against the chimney wouldn't meet code (there should be a 4" space from the long sides, and 2" from the short sides). This kind of kills any good way to have a closet, without little openings around the chimney.

You will note in the picture I have attached, that a staircase on one side of the chimney prevents me from giving the chimney the space it needs.

Is there any way to build a wall around the chimney that meets code? OR perhaps any options outside of that completely?

Hope someone has a good solution for me. I have had no luck in the libraries

[Rich]

Would they allow you to put some fire resistant material against the chimney? Like 2 layers of Type X drywall?

[Dano]

Wash DC is now allowing us to wrap duct, etc that require a 2 hour fire rating...similair to insulation blanket wrap but rated...saves alot of space..cost is equal to 2 hr drywall..so the advantage in this application is "space"