DENVER - A hostage is dead and another hospitalized after an "active shooter" situation in Denver.
The suspect in Friday's situation on South Irving Street remained in critical condition at Denver Health Medical Center Friday night.
Police identified the shooting suspect as 31-year-old Daniel Abeyta.
The Denver bomb squad spent the afternoon working in the area of South Irving Street, near West Evans Avenue, where booby-trapped incendiary devices remained after the shooter was shot by police.
Denver Police Chief Robert White reported that the shooter is suspected of killing one woman found dead inside a home in the area. A second woman in another home nearby was shot in the leg and was rushed to the hospital in serious condition.
The chief said the suspect was shot in the chest by police after officers saw him shooting at a propane cannister as officers closed in.
"As they were approaching, the suspect fired one shot at a makeshift incendiary device, which was activated," White explained.
"We're going to take the shot, take the shot," an officer said on police radio, captured by Broadcastify.com.
After a "bang" is heard on the radio, the officer said, "Party’s down. Party’s down. Moving up, we’re moving up. Took one shot."
White said that gun powder was found on the propane tanks and that they were "booby trapped" to explode.
"His intent was to harm someone," White said.
AIRTRACKER7 flew over the area and showed one of the propane tank devices in the middle of South Irving Street and two rifles -- one on a yellow Maserati and another one on the front patio of a blue home on South Irving.
A hand grenade was also recovered, White said.
No officers were injured.
Sources tell 7NEWS one of the shooting victims is the man's estranged wife. The 26-year-old woman took out a restraining order against him several years ago, court records say. The man and woman both filed for divorced in 2008 and 2009, but the case summary indicates the divorce was never finalized.
Police will not say who is dead, but Dan Markin fears it may be his longtime friend.
"The unknown is what's really killing me. It's just never knowing what's going on," he said.
The 31-year-old suspect has a criminal history that includes an arrest for felony menacing with a deadly weapon and felony child abuse in 2007. He pleaded guilty to destruction of property and the menacing charge was dropped. That case also prompted a mandatory protection order for the victim.
7NEWS photographers witnessed two ambulances arriving at Denver Health after the shooting. White said the suspect was rushed into surgery and is in critical condition.
The situation in the 2200 block of South Irving Street began around 10:40 a.m. when officers received the first report of the shooting and were sent to the area, White said.
Police quickly tweeted a warning for residents to stay indoors because of an active shooter situation. Police reported the shooter was "down" about 20 minutes later, but the area remains evacuated while the bomb squad works.
Officers are continuing to ask people to stay away as the "bomb squad deals with evidence."
Officials at nearby Abraham Lincoln High School confirmed the school was placed on lockdown. The shooting situation occurred about two blocks west of the high school.
The two female victims have not been identified. It's not clear if or how they are related.
"You hear about this stuff, but I've never experienced it," said Loretta Jamison who lives just doors away from the shooting scene. She was at home when police were talking to the gunman.