Updated 3:00 p.m.
Portland Police now say that a gunman they thought was holed up in a downtown parking garage is gone. Officers searched the Portland State University garage at 12th and Market, but did not find the suspect.
Update 2:20 p.m.
The lockdown has been lifted at the Helen Gordon Child Development Center and St. Mary's. It continues at Lincoln but students will be released at 3:20 p.m.
Update: 2:00 p.m.:
Police say they have not found the suspect in the parking garage. Police had surrounded the area for about three hours after he ran from PSU security.
Update 1:45 p.m.:
OPB's Kristian Foden-Vencil was at the scene just before 2 p.m. He says traffic is tangled in the area. Faculty, students and staff on the campus were notified about the incident by emails, texts and voice messages and warned to stay away. Police have the parking garage surrounded but are not 100 percent sure he's still in it. They have been trying to reach him with a megaphone.
According to OPB's Kristian Foden-Vencil, police are continuing to hail the suspect who they believe is still hiding in a parking garage near 12th and Market Streets.
Police remain inside the building at the Helen Gordon Child Development Center on the PSU campus next door.
The suspect's companion was arrested this morning.
Neither name has been released.
Large areas of the Southwest part of downtown near the PSU campus have been shut down to pedestrians, bikes and cars.
All the children inside the affected schools are safe, police say.
Three Portland schools have locked their doors as police search for a gunman who they believe may be hiding in a parking garage near 12th and Market streets after fleeing this morning on foot.
Lincoln High School, St. Mary's and the Helen Gordon Child Development Center on the PSU campus all locked their doors and took security precautions. Police officers are inside the preschool as a precaution, police said in a release.
The incident began after two men were approached by PSU security officers. One pulled a gun and fled. Portland police joined in the search and called in the SERT team.
Vehicle and pedestrian traffic has been shut down, police said.
Police Dept. Press Release
On Monday June 11, 2012 at 10:21 a.m. Portland Police officers assigned to Central Precinct responded to the area of 12th and SW Market to assist Portland State University Public Safety officers. PPB officers arrived on scene and learned that an male suspect was being contact by PSU Public Safety Officer and the suspect drew and pointed a handgun at the Public Safety Officer. The suspect fled the area on foot.
PPB officers learned that the suspect was likely contained in a parking garage in the area and have surrounded the garage. The SERT, Special Emergency Reaction Team has been call to the scene to assist in managing a complex tactical operation.
Both vehicle and pedestrian traffic has been shutdown in the area. There will be a disruption to traffic in the area until the suspect in custody.
For parents of children at Helen Gordon Child Development Center located at 1609 SW 12th the children inside are all safe. There are police officers inside the daycare with staff and children and officers will remain at the daycare until this incident is resolved.
PSU, Lincoln High and St Mary's High School are all in lockdown.
This is an ongoing incident no further information is available at this time.