Up to 25 police officers, some carrying rifles, stormed a brick warehouse and neighbouring yard in Bathgate St, seizing several items.
Officers and detectives could be seen looking through items in the warehouse which also contained at least two cars and equipment used by mechanics.
The Otago Daily Times understands the building has been used as mechanics premises for at least four years.
In the four years she had lived in the street the only problems she had with the men who worked in the building was when they parked unregistered vehicles on the road.
She described the men as friendly.
Another resident said he was shocked when an armed police officer prevented him from entering the street when he tried to return home.
He said officers were spread out over the street and looked as if they were preparing for someone to try to run from the building.
Detective Dave Checketts said a pre-planned search warrant was carried out on the property which had links to a Dunedin gang.
Police seized a small amount of property and were now trying to determine if any of it was stolen, Det Checketts said.
No arrests had been made in relation to the raid.
