The shooting was reported in the area of East Gun Hill Road and Hull Avenue just before 12 p.m.
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It all unfolded as a fight broke out inside the deli between a 29-year-old man and 21-year-old man and then spilled outside.
Police said the 21-year-old had a gun and the 29-year-old stabbed him with a knife during a violent struggle.
The man with the knife ran out of the deli and was chased the man with the gun who fired at him point blank range into a white Lexus.
Police who happened to be nearby rushed over to confront the man with the gun and fired numerous times.
That man was taken to the hospital where he was pronounced dead.
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The 29-year-old man was found a short time later with a graze wound to his head. He was taken to the hospital and is said to be stable.
Newscopter 7 was over the scene as officers found him in a business a few blocks away. Charges against him are pending...
Police say the search continues for a motive.
"We have to look at the backgrounds of the individuals involved and what they were doing and what sparked this argument," said NYPD Chief of Detectives James Essig.
Eyewitnesses say both men were familiar faces around the area and they don't know exactly what their beef was.
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They said they can understand why the police had to make sure no one else got hurt.
Eyewitness News is tracking crime and safety across New York City and in your neighborhood
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