Updated at 4:50 p.m.
Oak Lawn Police Department Division Chief Michael Kaufmann said the suspect surrendered peacefully.
Updated at 4:34 p.m.
A neighbor on 96th Street said the gunman kicked in the door of a nearby home and ran into the basement stairwell, where he was threatening police and himself.
Officials said the man had a gun in his mouth. Law enforcement officers had cordoned off a 3-block area around the brick bungalow that the suspected robber entered and brought police dogs into the house, the neighbor said. Police were then able to safely detain him.
Neighbors said they saw police escorting him out around 4 p.m.
Updated 4:23 p.m.
A member of the SWAT team told Oak Lawn Patch that they have the suspected gunman in custody.
Details will be forthcoming.
Updated at 4:10 p.m.
Police and FBI agents in the area of 96th Street and 49th Avenue again told residents to stay in their homes around 3:55 p.m.
Around that time, school officials released a notice that Oak Lawn-Hometown Middle School, 5345 W. 99th St., was on lock-down. Calls to the school were not immediately answered at 4:10 p.m.
Dozens of squad cars are lining the streets, some from nearby municipalities including the Palos Heights Police Department.
There is heavy police activity in the area of 95th Street and Cicero Avenue, where authorities are reportedly trying to talk to man who has a gun in his mouth.
Village Manager Larry Deetjen said that an emergency alert was issued at approximately 3:15 p.m. notifying residents to remain indoors.
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A male black, approximately 30 years old, is believed to have held up a Radio Shack in Palos Park on Wednesday.
A suspicious person matching the description of the Palos robbery suspect was called in Wednesday afternoon by someone at the Oak Lawn Radio Shack. The man, who police said was wearing a gray hooded sweatshirt, took off on foot.
He is said to be cornered in a stairwell with a gun in his mouth, Deetjen said.
Patch is on the scene. Oak Lawn police have entered a house on 96th Street between Cicero Avenue and LaCross Avenue with a police dog.
Deetjen said police are trying to stabilize the man.