A chemical supplies business was operated from a house that police raided yesterday after reports of dangerous and illegal chemicals.
The business, based at 13 Oxford Street, Bridlington, supplies "fine chemicals, mainly but not exclusively for hobby use; chemical or pyrotechnical".
The firm's website said its customers include University of Liverpool, University of Manchester, Burberry London, BAE Systems, Pepsico International and the Lotus Formula One Team.
The arrested man, who is thought to own the business, described himself on a blog as a "chemical enthusiast".
Police have cordoned off Oxford Street and part of Cambridge Street for the second day in a row, after the raid was carried out yesterday morning.
More than 40 residents had to be evacuated and were advised to go to Bridlington Spa, where they were provided with free food and drink.
A spokesman for Humberside Police said: "This morning we will be moving the chemicals which introduces an element of risk, and in order to protect the public and ensure their safety we have evacuated them again.
"The chemicals will be disposed of safely with the support of the EOD and forensic scientists. There is likely to be a series of very small controlled explosions in the area."
It is hoped that residents can return to their homes by 8pm tonight, after police initially said the cordon could last up to three days.
Leaving their homes for the second time this morning, neighbours Maureen and Graham Selby said they were shocked.
Graham said: "You read about these things but you don't expect it to happen to you. "It's a shock - quite a shock.
"I saw the police outside and all the activity. We we wondering what was going on.
"We were told to leave at about 2pm and we went straight down to the Spa."
Another unnamed neighbour, whose wife called him from their Oxford Street home while he was out, said: “Initially my wife phoned me to say they were at the entrance to the man’s house with a battering ram.
“They didn’t use it in the end and had quite a quiet entry.
“A few minutes later I saw him handcuffed, coming out of his house. “Then we saw the Scene Of Crime Officers go in and that’s pretty much it.”
However other eyewitness reports suggest the raid was more dramatic.