A police spokeswoman said a large contingent of armed police was called to the scene about 4.30pm, but the 38-year-old had already left in a vehicle. It was stopped by police nearby, and the man fled on foot.
"He was taken into custody shortly afterwards on the corner of North Rd and Frame St."
She said officers were armed as a precaution because the man was also wanted by police for "other matters".
Investigations were continuing and charges would follow.
He was expected to appear in the Dunedin District Court today, she said.