You are correct, except that it was a bomb that they dropped to knock out a fortified installation on the roof. It started a fire from gas cans that were up there, and the result was what you recall.
Whenever there is a standoff situation, the Police try to force a conclusion by aggressive engagement (They attack) and it almost NEVER ends well (Can you say Waco?).
People always die every time it has been tried.
I KNEW I should not have relied solely on my increasingly-faulty memory...
;-)