"Dunn stopped Lopez, asking him if he was going to pay for the item and a confrontation ensued," police stated. "Dunn then fired his weapon, striking Lopez, who was still in possession of the hatchet."
Police said they interviewed Dunn, Lopez's father and two other employees who were working at the store at the time.
On October 15, police also released several surveillance videos from the military surplus store showing Dunn grabbing onto the left sleeve of Lopez's shirt as he tries to leave through the store's entrance.
Moments later in the video, as Lopez is seen gripping onto the handle of the door, Dunn raises a gun and shoots Lopez in the upper left torso. Lopez falls facedown on the ground, while Dunn moves to the right, partially obstructing the view of what happens next in the video.
However, soon afterward, Lopez's body stops moving. As Dunn steps outside, a pool of blood can be seen forming beneath Lopez's body. On the ground, just to the upper right of Lopez's body, is a small hatchet.
Dunn is being held in custody at the Polk County Jail, officials said. Dunn was taken into custody from his lawyer's office and was cooperative, Lakeland police chief Larry Giddens told reporters.
Dunn's lawyer, Rusty Franklin, did not immediately respond to a phone call and a message requesting comment. However, Franklin previously told other local news outlets Dunn was justified in shooting Lopez because Lopez was "wielding an axe."
Franklin told WTSP News he would continue to "vigorously assert Dunn's lawful right of self-defence."
"This situation was commenced and started not by Michael Dunn," Franklin told the news station. "Someone made a choice to shoplift."
According to CNN, a probable cause affidavit stated that, as Lopez and Dunn struggled, the hatchet fell down Lopez's pant leg. Lopez reportedly offered to pay for the hatchet but then tried to flee the store, police said.
"At no time did the victim appear to have made any threatening movements towards the suspect," the affidavit stated, according to CNN.
Dunn's actions were not justified by Florida's "stand your ground" law, Brian Haas, the state attorney for the 10th judicial circuit of Florida, said at a news conference.
The law gained notoriety and national attention after George Zimmerman used it to claim he was justified in shooting 17-year-old Trayvon Martin in Sanford, Florida, in 2012.
Under the statute, a person is justified in using deadly force if he or she believes it is necessary to "prevent imminent death or great bodily harm to himself or herself or another or to prevent the imminent commission of a forcible felony."
"There's been so much discussion on the facts of this case and the application of the stand your ground law," Haas said.
"I fully anticipate that those issues will be brought before a judge for a hearing. But let me be clear: It is the policy of my office to comply with and abide by the stand your ground law. However, I have determined that this case and the actions of Mr Dunn fall outside the protections of the stand your ground law."
Haas said Dunn's position as city commissioner had no bearing on his decision to take the case to a grand jury.
"What I can tell you is that the grand jury carefully considered the evidence hat was presented to it and they did their job, and that's what we're going to go forward on," Haas said. ". . . [Dunn] was an owner of a store who, through this set of facts, this killing happened. It's not something that we see every day."
According to his city bio, Dunn took office as a city commissioner in January and represents Lakeland's southwest district. He served as chairman of the Lakeland Code Enforcement Board and graduated from the Lakeland Citizens' Police Academy.
Police described Lopez as a transient, according to the Tampa Bay Times. His sister, Veronica Lopez, told the newspaper he was not a violent person.
"My brother didn't need to be killed like some animal," she told the Tampa Bay Times.
Giddens, the Lakeland police chief, defended the lengthy investigation of the case, saying the department submitted a complaint affidavit to the State Attorney's Office only nine days after the shooting.
"The process was one which was handled with the utmost care, as all investigations must be," Giddens said.
"Although this investigation may have taken longer than some would have liked, we had an obligation to do it right, and that is what we will always do to ensure the citizens of this community can continue to have the faith and confidence in us that we have earned in these past several years."