Police said the gunman had gone into the Olde Pink House restaurant Thursday morning and shots were fired about 8:15 a.m., WTOC-TV, Savannah, reported.
There were no reports of injuries or hostages taken.
Gena Sullivan, a Savannah-Chatham Metro Police spokeswoman, told WTOC the gunman was taken into custody without incident after a SWAT team moved into the restaurant.
A SWAT staging area had been set up in front of the restaurant, and police had cordoned off a two-block area and asked people to avoid downtown near the Olde Pink House.
During the standoff, police urged people who were downtown to stay inside buildings, and the Savannah College of Art and Design sent out an alert telling students in some buildings to remain inside.
Snipers had been on top of a downtown parking garage and a robot was brought to the scene.
WTOC said a silver Jaguar parked in the area had bullet holes.
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