There was a heavy police presence in Welcome Bay this morning.
Police vehicles could be seen at the intersection Kaitemako Rd and Panorama Drive.
A police spokeswoman had confirmed that police were executing a pre-planned search warrant.
A witness who lived near the scene, who did not want to be named, told the Bay of Plenty Times she could hear police giving instructions through a loud speaker.
"They were saying things like 'you need to come out now' and 'come out with your hands up'."
She said she counted 10 police vehicles, including mufti cars, a police ute, a police van and a dog unit.
Armed police had blocked off the entrance to Panaroma Drive and Beech Court while the operation was in progress.
She said no one could get in or out of the intersection and children were starting to arrive for school bus pick-up.
She understood it involved a property at the bottom of the hill.
Dante Scott, a school student who lived on Kaitemako Rd, said he went to get on his school bus and noticed four undercover police cars and a communications van.
His bus was stuck in the road and not going anywhere as a result, so he ended up heading home.
He said he asked a police officer what was going on and got the response that "they were looking for someone".
A spokeswoman from Earthkids Early Childhood Centre on Panorama Dr said centre operations were back to normal.
Previously, a Welcome Bay resident said she had two children who attend the centre on Panorama Dr and parents were being told to turn back and make "alternative arrangements".
She said it was "a little bit scary", but she had heard everyone was fine.