The area of Grand Beach, MI looks like something out of a movie.

One of three inmates who escaped from the Indiana State Prison in Michigan City has been caught in a nearby southwestern Michigan town by a security guard for Chicago Mayor Richard Daley.

Now, residents in the area are being told to stay inside, lock their doors, and be on the lookout for another escapee. This applies to everyone living in the following areas: Grand Beach, Forest Beach, and New Buffalo Township.

“These people are convicted murderers, so they got nothing to lose…and it’s pretty scary,” says Joel Blakemore.

The Town was turned upside down, with helicopters, K9 units and vehicle searches.

“Their going door-to-door and searching all the homes. We have helicopters, we have quad runners searching the wooded areas, we have the coast guard searching the shore line,” explains Chief Dan Schreder of the Grand Beach police.

Marsha Chulibrik is one resident who is staying inside until they convicts are found. Saying she is going to cancel all her previous plans.

Grand Beach, Michigan Police Chief Dan Schroeder said two of the inmates were spotted in the town and Charles Smith, 48, was taken into custody.

Now, police are looking for Mark Booher, 46, who was spotted with Smith.

Officials say Booher is wearing a white shirt, gray sweats, has blue shorts over those sweats, and is carrying a white bag.

He was last spotted heading southeast.

A third inmate, 45-year-old Lance Battreal, is also still on the loose.

Helicopters are in the area, as well as sniffing dogs to help in the search for the two men.

Meantime, police say Smith did not resist arrest but he also would not talk about any of the escape plans. Right now, it appears the three escaped the maximum security prison by traveling in tunnels under the prison grounds.

Smith was captured early Monday morning.

A Grand Beach police officer got a call before 7 a.m. reporting that a private security for Chicago Mayor Richard Daley was holding Smith at gunpoint in a private driveway near the mayor's house, which is about eight miles from the prison.

Smith is originally from New Castle and was convicted of murder. Booher was also serving a sentence for murder, while Battreal was serving time for rape.

We have a crew in the area and will bring you more information as it becomes available.