The man who is believed to have pulled out a gun and pointed it at a wall is yet to be located, police say.
A number of police were called to the Dunedin School of Art on Reigo St on Thursday afternoon.
No-one was injured and no shots were fired but it is believed a man was in possession of a gun at the premises.
Police say they are still searching for the man and are appealing to the public for information.
They say he was wearing a black beanie, brown puffer jacket and a pair of sunglasses tucked in his jacket.
Anyone with information about the incident who has not yet spoken to police is urged to call 105.
Newshub.