Dearborn Hampton Inn shooting: Suspect surrenders; 1 dead

(UPDATE: 8:30 p.m.) The gunman surrendered peacefully to Dearborn police. Investigators say he is a 38-year-old suspect with mental illness and a history of drug abuse.

Police say he shot and killed a 55-year-old clerk from Riverview in a dispute over a refund he wanted. See more HERE.

A suspected shooter is barricaded inside the Dearborn Hampton Inn as police continue negotiations after one person was shot.

Police said the suspect, who is armed with a long gun, is contained but not in custody and warned that the suspect could shoot again. People should avoid the "extremely dangerous" area, Michigan State Police said. 

"I know that our curiosity gets to us, and we want to see what's happening, but this is a very fluid situation," said Lt. Michael Shaw, with MSP.

Negotiations are ongoing. 

"At this point, it’s going to be a waiting game," Dearborn Police Chief Issa Shahin said.

The situation began when police received a call about shots fired at the hotel at 22324 Michigan Ave. 

"There was some type of dispute with the hotel staff," Shahin said, though he said he could not confirm if the person shot was an employee. "We believe it revolved around money."

Police evacuated the hotel and took one victim to the hospital. While police would not say if the victim is dead, FOX 2 sources have confirmed they died.

Stay with FOX 2 for updates.