The situation unfolded just after noon on Wednesday at the Gallery Holiday Motel on Ball Street.
Authorities say the suspect shot at officers and they were forced to return fire.
During the exchange of gunfire, one of the officers was shot in the back. He was taken to University Hospital and is stable.
No one else was injured but two other officers were taken to the hospital for observation.
Two people were taken into custody.
The cause of the shooting is under investigation.
As a precaution, officials say Augusta Street School was locked down for about 45 minutes.
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