Police arrested two men and are seeking a third person after a man was shot to death New Year's morning, becoming the city's first homicide victim of 2011.

A second man was taken to hospital with gunshot wounds.

Police say shortly after 1 a.m., as New Year's celebrations were coming to an end, officers were called to the area of 3 Street and 4 Avenue S.W. with many 911 calls reporting shots fired.

When they arrived, they found a man in his late 30s with gunshot wounds lying in the middle of the street. He was taken to hospital where he later died.

A second man in his early 30s was discovered in a vehicle at 4 Street and 3 Avenue S.W. also suffering from gunshot wounds. He is currently in stable condition.

"This is the time when people start to come out of their bars and make their way home," said Staff Sgt. Darren Cave. "It's an unfortunate circumstance and an unfortunate way to start the year."

Police don't know whether the dispute started on the street or ended there. At least one bar in the area was locked down after the incident, trapping patrons inside for several hours as evidence was collected from the street.

Considering how busy the area was at the time of the shooting, police say it's fortunate no one else was hurt.

"Certainly, any time that we have shots that are fired is a concern," Cave said. "It's brazen on the part of the individual to conduct their activities in such a way."

Police say they were able to arrest two men 15 minutes after the gunfight because extra police officers were on duty for New Year's Eve and converged on the crime scene immediately.

Officers are still looking for a third person. No charges have been laid at this point as police continue to conduct interviews. Nearly two dozen people have been questioned.

Police say the relationships of the parties involved are unclear at this point.

Anyone with information on the incident is urged to contact Crime Stoppers at 1-800-222-8477 or online.