Emergency response commander Inspector Alastair Dickie said police had the situation under control and safeguards were in place to prevent any increase in violence, or risk to the community.
"They [the gangs] are boosting their numbers, possibly in preparation for further conflict."
Eighteen Black Power associates, including Timaru members, were found at a Pine Hill house searched by the armed offenders squad yesterday, Insp Dickie said.
Dunedin police were also monitoring Mongrel Mob activities.
There was a suggestion more Mongrel Mob members had arrived in the city. Police were yet to confirm numbers, he said.
The gang tensions surfaced on Sunday following a clash at Allenby Ave, Pine Hill, where a man, believed to be Black Power president Albert Epere, was shot in the arm.
Four of the men arrested after that clash were granted bail yesterday. Strict conditions were imposed, including 24-hour curfews and orders not to have contact with other gang members or associates.
He understood representatives from both gangs were coming to the city in an effort to resolve the tension.
The armed offenders squad was called to the Pine Hill house, the Black Power headquarters, yesterday afternoon after a member of the public reported seeing a man with a rifle at the rear of the property at 12.45pm.
The property was cordoned off for more than two hours.
No firearms were found during the search, but other weapons, including knives and axes and "various other things", were seized, Insp Dickie said.
The cordon was lifted at 3pm.
The occupants were co-operative, he said.
Liberton Christian School principal Fiona Sizemore said police worked closely with the school during yesterday's incident to ensure the safety of the 75 pupils and staff.
The school is near the house at the centre of yesterday's search.
A dozen armed police were positioned inside and outside the Dunedin courthouse yesterday for the appearance of a Mongrel Mob member in the morning and two Black Power members in the afternoon. A further two Black Power members were granted a registrar's adjournment.
Traffic was diverted from lower Stuart St during this time.
One Black Power member was bailed back to the house searched by police yesterday, with the condition he not associate with other gang members.
Several Mongrel Mob members and their associates stood outside the courtroom yesterday morning when Mongrel Mob associate Tyrone Kamal Henare (19) appeared on an indictably laid charge of unlawful assembly with two others in Allenby Ave.
He was remanded in custody to a pre-trial date of November 22.
In the afternoon, four Black Power members facing unlawful assembly charges were bailed to separate addresses. Two appeared before Judge Paul Kellar, while the other two were granted a registrar's adjournment.
Michael William Kushell (30), unemployed, appeared on a charge of unlawful assembly and was bailed to reappear on October 14, with bail conditions including he not associate with any other gang members or associates.
Daniel Moana Ryan (45), labourer, also appeared on a charge of unlawful assembly, and was also bailed until October 14.
Albert Victor Epere (44) and a 19-year-old associate, who has name suppression, were granted a registrar's adjournment, also to October 14.
Police were still looking for Dylan Jordon Hill (19) yesterday, after an arrest warrant was issued for him earlier this week.
