Bystanders told the Bay of Plenty Times said they saw "massive explosions" and heard what sounded like shots being fired.
A worker at a nearby business said police had let off some type of explosives.
"There were massive explosions," he said. "Not gunshots but smoke."
Two men who lived on Ngatai Rd said police were searching a house near where they lived. They did not know who lived in the house.
Another bystander said he had been stuck in traffic after cars had been directed around the blocked area. "It is a bit scary," the man said.
The road was reopened to traffic just before 10am.
Police confirmed the search was in relation to Waite's death.
Inspector Warner said a man helped police with their investigation as a result of yesterday's inquiries.
"Police are confident there is no further risk to the public," he said.
Police confirmed the inquiry at an Otumoetai address was also linked to an Armed Offenders Squad raid and search in and around Wilrose Place in Gate Pa on Wednesday.
When the Bay of Plenty Times visited Wilrose Place on Thursday morning, there was a reduced police cordon at the scene of Wednesday's initial raid.
Standing guard at the cordon was a lone armed policeman and a fire truck was leaving the scene.
Police believed Waite visited a Wilrose Place address before he was dropped off at the hospital.
Anyone with information is urged to contact Detective Inspector Lewis Warner at Tauranga Police on (07) 577 4300 or anonymously to Crimestoppers on 0800 555 111.