The incident happened around 3 p.m. Monday in the 500 block of South Lake Avenue.
Police say a man with a knife was acting strangely and at one point set off a fire extinguisher at a business, causing an estimated $2,500 in damage.
Eyewitness video shows three restaurant workers subdue the man on the sidewalk - two of them holding down his upper body while a third sat on his legs.
Two officers soon arrived and took over, placing the man into handcuffs and then arresting him.
Police say the man is facing a charge of felony vandalism. He did not assault anyone with the knife.