GRAND ISLAND, Neb. -- A Central Nebraska hospital continued to function despite an armed standoff in the neighborhood.

Grand Island Police say the standoff started around 7:00 in the 700 block of Orleans Drive, and reportedly reach a peaceful resolution around 9:30 a.m. People were encouraged to avoid the area.

Police issued an update around 7:30 saying the situation is ongoing but contained. The hospital is conducting business as usual. There is no word yet if Orleans Drive remains closed.

We will update this story as more information becomes available.