POLICE shot dead a man armed with a knife in a Belmont caravan park after capsicum spray failed to subdue him yesterday.
The man was shot after two officers were called to the Spinnakers Leisure Park on the Pacific Highway about 5pm following several reports of a loud argument in one of the caravans.
The officers were confronted by the man, aged in his 40s, who came at them armed with a knife in a grassy children's play area behind the caravans.
Police said the man repeatedly refused to put the weapon down and, despite being sprayed with capsicum spray, continued at them and was shot.
Officers said the spray had no effect on him.
Residents heard between five and seven gunshots during the stand-off but police were unable to confirm last night the number of shots fired or how many hit the man.
Police also could not confirm whether one or both officers fired their weapons.
NSW Ambulance confirmed the man died at the scene.
Police, including Sydney homicide detectives and the critical incident team, were still at the caravan park late last night gathering evidence.
The play area where the shooting occurred was roped off as was a portion of the residential area.
A man, who said he was the brother of the deceased man and refused to be named, identified the dead man as Michael Capel.
"They shot my brother," he told The Herald.
"They reckon he came out with a knife."
Residents of the small caravan park were still reeling from the shooting.
"It's crazy, you never expect something like this," one man, who declined to be named, said.
"He [the deceased] had some issue, yeah he had a couple of issues, and some people have been saying he might have been off his medication.
"Nice fella, youngish I guess."
Other residents said Mr Capel was quiet, mostly kept to himself and had lived in the area for about 18 years.
Police said a report would be prepared for the coroner.
"The police were confronted by a man with a knife," Superintendent Charles Haggett said.
"Despite [the man] being sprayed with capsicum spray, that had no effect, and being warned to put the knife down several times . . . police have discharged their firearms.
"The critical incident team and homicide will now be investigating."