What was lifted? The lockdown? It prevented no one from leaving their home.
the suspect the cops couldn’t find
Had the cops already searched the boat?
No. And they weren't going to either, but they had already been to the house. The cops were packing up to go home for the day and lifted the shelter in place and were halting their searches. They were opening the roads and directing people back to their houses.
AFTER that, the citizen went outside and found the perp. The cops couldn't find the suspect. They had K9s. They could search an elderly man man with a robot on the street.