The car crashed into the Bark! music space, part of the Dog With Two Tails Bar & Venue, destroying the building's frontage, around 2.30am this morning.
The venue was set to have its final show on April 1 after the owners decided to close because of business difficulties and noise complaints.
A post by Dog With Two Tails said the café would be closed tonight due to heavy damage to its function space.
But it would open tomorrow and Saturday to say its goodbyes.
‘‘We are unsure yet on what will happen with our events for the coming days, but we will try our best to have some performances,’’ the post said.
Senior Sergeant Anthony Bond, of Dunedin, said the 28-year-old passenger was taken to hospital with a broken leg.
The driver, a 28-year-old man, ran away on foot, leaving behind a bag containing his identification and 60g of cannabis in the car.
The police dog team was called to track him around the city.
He was located on the roof of a building in Dowling St, where police received calls from members of the public about his presence.
He was arrested and is being treated for a broken ankle. It was unclear if it happened during the crash or while fleeing from officers.
A blood sample had been taken to determine if drugs were involved in the crash and charges, for careless or dangerous driving causing injury, were likely, Snr Sgt Bond said.
The man had also been wanted in relation to a family harm assault incident, Snr Sgt Bond said.
He had felt an immediate sense of loss for everyone involved, and for all the work which went into the space.
‘‘I was really looking forward to one last hurrah for Dog . . . not only do we lose a venue we all value so highly but we don't even get to have a party to see it off,’’ the man said.
