Kaikorai Valley Rd resident Maria Chapman said she was on the deck of her home when the vehicle went past with several police cars following.
"He was speeding and not stopping, and the next minute he hit the spikes and the whole car spun out."
The car travelled some 50m and spun 450 degrees before coming to a stop straddling both lanes of the road.
The driver then fled on foot but was caught by police officers within 100m of the car, Miss Chapman said.
Mr Brown said a 30-year-old man was in police custody last night but was likely to be released on bail.
He will appear in the Dunedin District Court next week charged with reckless driving, failure to stop and driving while disqualified.