SEATTLE -- A man armed with what appeared to be a grenade was fatally shot at the new federal courthouse in Seattle during the noon hour on Monday, police said.

Seattle police spokeswoman Carmen Best said the man is dead.

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Video: Bomb Squad Checks Suspect For Explosives

A Seattle police spokeswoman said the police department received a call at 11:54 a.m. of a man in the lobby who was making threats and appeared to have a grenade.

Police and federal officers responded, drawing their guns and telling bystanders to get out of the line of fire. Shots were fired and the suspect was hit, the spokeswoman said. It wasn't immediately known whether Seattle police or federal law enforcement officers shot the man.

Slideshow: Downtown Building Evacuated

A member of the bomb squad wearing protective gear checked the man for explosives and X-rayed a backpack the man was wearing. Seattle Police Chief Gil Kerlikowske said there were no explosives in the man's backpack.

Medics then entered the building to check on the man.

U.S. Marshal Eric Robertson said the man was stopped before going through security. Robertson said he didn't know how many times the man had been shot.

A janitor who saw the man enter the lobby says the man yelled, "Don't come near me, don't come near me! Stay away, stay away!"

Robertson said the entire federal building was evacuated, but some employees were allowed to return while the bomb squad worked. Streets surrounding the building also were cordoned off as dozens of police cars responded.

Workers and jurors who were in the building were evacuated down secure stairways.

"I was sitting at the courthouse and having my lunch and … all of a sudden, police were jumping out of their cars with guns pulled. I heard them say 'He's in the lobby' and I heard people yelling 'Get out of here, get out of here,'" said Beth Bronson, a juror.

The new federal courthouse opened last August. Many of the major security features of the $171 million high-rise are disguised. Even glass walls that permit ample sunlight are blast-resistant.

The new courthouse houses the U.S. Marshals Service, judges, support staff and court clerks, as well as the U.S. Attorney's Office, bankruptcy courts, and probation and pretrial services.

It holds 13 district courtrooms, five bankruptcy courtrooms, and 22 suites for judges and their staff. Secure hallways lead from cell blocks into the courtrooms, so prisoners don't contact the public -- unlike in the old building.