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Some 160 people have been evacuated from the area where a lone gunman remains holed-up in house in Napier.
Senior Constable Len Snee, 53, was yesterday fatally shot when he approached the Chaucer Road house with two colleagues yesterday in what started off as a low-key drugs raid.
Senior Constable Bruce Miller, 40, a community constable in the suburb of Ahuriri, dog handler Senior Constable Grant Diver, 50, and a neighbour were wounded by gunshots.
All are in a critical condition in Hawke's Bay Hospital's intensive care unit.
Click here for latest updates on the siege
Civil Defence confirmed that 160 people had been evacuated from the area around siege zone, 93 people of whom stayed overnight at Napier Intermediate School, while others stayed with friends and family.
A number of residents living just outside the cordon, but still reasonably close to the scene, have been asked to stay in their homes. Three schools in the area are also closed today - Napier Central School, Nelson Park School, and Nelson Intermediate.
Most experienced commanders at scene
Armed Offenders Squads (AOS) from Hawke's Bay and Gisborne are involved in the siege.
There are about 322 volunteer AOS members across 17 units. They are armed with Glock 9mm pistols and Bushmaster M4A3 .223-calibre carbines.
The highly secretive Police Special Tactics Group (STG) is also at the scene of the siege. The group is trained to resolve incidents and was formerly called the anti-terrorist squad.
"We do have our most experienced tactical commanders here working to bring this to an end without anyone else being hurt," eastern district area police commander Sam Hoyle told Radio New Zealand today.
Mr Hoyle said officers had had only "spasmodic" communication with Mr Molenaar overnight.
"We are relying on the tried and true, in terms of cordon, contain and appeal."
He said police had the advantage of being able to rotate fresh tactical staff on duty, while Mr Molenaar was on his own and would eventually tire.
Air New Zealand has been ferrying various specialised police into the Hawkes Bay from around the country.
Three army Light Armed Vehicles have also joined police, along with the bomb squad.
Police Minister Judith Collins told TVNZ's Breakfast show that Police Commissioner Howard Broad wanted to pass on his thanks to Air New Zealand for their role.
Shots continue
Police had contacted the man believed to be the gunman - Jan Molenaar - by phone and were attempting to negotiate with him.
Mr Hoyle said there were "several indiscriminate shots" fired from the property overnight.
"Our focus today is on trying to resolve the situation. We want to ensure no more people are put at risk or hurt. We are working carefully towards a successful outcome. We remain hopeful that the gunman will talk with us and give himself up," Mr Hoyle said.
He said Napier residents should stay calm.
"This is a frightening and unsettling situation for everyone and we understand how people are feeling. We can assure the public that we are doing everything to keep the community safe," Mr Hoyle said.
Mr Hoyle said it hurt all police that Mr Snee's body was still lying on the ground where he fell.
"Len should be with his family," he said.
"We wish beyond anything else that we could have got him out before now, but the risks have just been too great.
"We have been fired upon dozens of times overnight since this started."
Police have set up temporary headquarters at the Napier Army Centre, which is about 200m from the cordon blocking off Chaucer Road.
Evacuation
Two armed female officers are manning the cordon, directing traffic and ensuring members of the public do not enter.
Ms Collins said the evacuation was still going on as police tried to safely removed neighbours or anyone who was in line of sight of the siege house.
"Obviously it's a very big task, it's a huge imposition on the people of Napier but the police say it has to be done," she said.
"They have asked for certain resources, I can't go into that. They're planning for contingencies, it's a very volatile situation."
Evacuated residents have been told they will not be able to return to their houses until the cordon has been lifted.
Trapped inside house
One resident still trapped in her house has not had any face-to-face contact with police and says she only has another day's worth of food.
Nikki Luke told Radio New Zealand that her father-in-law also needed medication.
She said at about 11pm she had been phoned by police and told to "take cover" and stay away from the windows.
Ms Luke said the street lights were turned off and shots were fired.
She said four or five other residents are still in their houses in her street.
"We know that we're safe. We know that police are in the area," Ms Luke said.
Waiting for news
Megan Helm, 22, and her mother Kay have spent the night huddled in a blanket outside a dairy on the corner of the two streets, while Megan's brother Sam remains in his flat behind the corner.
Megan spoke to her brother about 1.30am and said he was "getting a bit of cabin fever".
Kay Helm said they had stayed because they thought Sam might be evacuated during the night.
"We thought if he comes out in the middle of the night he will need someone to come out and take him home."
Megan said they had been keeping in touch via phone.
"It's my little brother, I can't help it. We have been sitting here texting him and talking on the phone. It keeps him busy and we know he's okay."
The drugs raid
Yesterday morning's police raid was supposed to be a routine cannabis bust.
Three experienced police officers went to the two-storey home on Chaucer Rd South, a steep street opposite the city's botanical gardens.
The officers were believed to be unarmed, as is usual for low-key busts.
But they were met by a gunman who fired a volley of rifle shots that killed Mr Senior Constable Snee, and injured Constable Miller, Constable Diver and the civilian.
Mr Diver, a police dog-section officer, crawled to a neighbouring property where he was rescued by armed offenders squad members.
Police said today that the man who was shot in the incident was a "hero" and that he tried to stop the offender shooting at police.
Superintendent Sam Hoyle said the man was at the address at the time of the search and he attempted to disarm the offender.
"He has behaved quite heroically in trying to stop the offender shooting the police officers,' Mr Hoyle told NewstalkZB.