Reports indicate that several people may have been hit by a vehicle at about the same time of the reported shooting.
While early reports suggest the driver fired what appeared to be a gun, it was subsequently revealed that the suspect was carrying imitation firearms.
It was the first mass casualty incident in NY since a US Navy veteran plowed a vehicle into pedestrians in Times Square, killing an 18-year-old woman from MI and injuring 22 other people on May 18.
Gay said he stuck his head around the corner and saw a slender man in a blue track suit running southbound on West Street holding a gun.
He was then shot by police, according to sources.
Witnesses described a chaotic scene of a white pickup truck hitting bicyclists on a path near the World Trade Center and then slamming into a school bus.
New York Gov. Andrew Cuomo also issued a statement, saying: "To New Yorkers: be New Yorkers, live your life, and don't let them change us or deter us in any way, manner, shape, or form".
Police have encouraged people to avoid the area with emergency services at the scene.
United States media said a gunman opened fire from a vehicle not far from Stuyvesant High School. It is a selective public school, one of nine specialized New York City high schools that admit students based on test scores. Stay on top of breaking news stories with the ABC11 News AppAccording to a spokesman for Mayor Bill de Blasio, the mayor has been briefed on the incident and said there is no active threat. "I see two dead bodies and citibikes on the floor destroyed", one Twitter user wrote, according to the New York Post.
Sanders says, "Our thoughts and prayers are with all those affected".
Trump says in a tweet, "In NYC, looks like another attack by a very sick and deranged person".