UPDATE: A standoff in downtown Sacramento this morning ended peacefully.
Sacramento police were called to the scene after a man reportedly pulled a gun and fired shots into the air during an altercation with another man and then retreated into the home.
Police were negotiations to get an unidentified man to come out of a home near 10th and U streets.
A SWAT team was at the scene as negotiators tried to talk the man out of the home.
Two people were pulled from inside the apartment where the suspect was thought to be holed up and a K-9 swept the building.
One of the two removed from the building is thought to be the suspect.
A weapon was also found inside the home.
A day care center that was near the situation has been re-opened and everyone is safe.
Stay tuned to NewsRadio KFBK and KFBK.com for updates on this developing story.