Officers were called to Station Bridge at around 11.20pm on Thursday 13 December 2012 following reports that there was a man with a large knife outside Habitat.
Officers arrived at the scene and a few minutes later the man, who is aged 37, dropped the knife and was arrested.
He remains in police custody as enquiries into the incident continue.
Officers are appealing to anyone who witnessed the incident to contact them with information.
Anyone who can help officers with their enquiries is urged to contact North Yorkshire Police on 101 – select option 2 – and ask for PC Sharon Rawlings or Harrogate police.
If you wish to remain anonymous, Crimestoppers can be contacted anonymously on 0800 555 111.
Please quote reference number 12120209999 when passing information about this incident.