Police then fired multiple shots, critically injuring him, Price said.
Officers provided immediate first aid to the man until paramedics arrived and he was taken to Christchurch Hospital, where he remains.
"We understand this will be a shock to the Kaiapoi community and we want to reassure them that there is no ongoing risk," Price said.
He said there would be an increased police presence in the area tonight as a scene examination is undertaken and enquiries are made.
"This will also have a huge impact on the officers involved, their family and colleagues, and we will be providing them with support."
The Independent Police Conduct Authority will be notified and a Critical Incident Investigation is underway, as is standard practice.
Police also thanked the member of public who notified them of the incident.
Residents reported on social media they had heard gunshots earlier this evening and seen a large police presence.
One resident said on Facebook a man was seen walking up a street with a knife.
He was Tasered but it didn't work properly and he then "took off" before being found by police dogs, the resident said.
Police said further information was not expected to be provided this evening but an update will be provided as soon as able tomorrow.
Earlier this month, police fatally shot Samuel Fakalago in the Wellington suburb of Newlands after they were called to a family harm incident.
Police could see inside the home - Fakalago who had barricaded himself inside, was holding a knife to a woman's throat.
He was threatening her and the child, and officers were "gravely concerned", police said at the time.
The child managed to escape the stand-off before the fatal shooting and the woman suffered injuries which were not life-threatening.
