The Police Armed Offenders Squad has been called out to Tauranga's Gate Pa.
Witness Mitchell Robinson, who works two buildings away, says six armed policemen were on Wilrose Place, yelling for a person to exit a building with their hands up.
Police have confirmed the AOS is executing a search warrant on the street in relation to an ongoing enquiry.
Policemen can be seen in and around a business at the end of the place. A cordon has been set up at the entrance to the street.
Earlier today a man died after being dropped at the door of Tauranga Hospital with critical injuries.