Authorities were called to the apartment building around 9:30 p.m. Sunday night.
"Police officers discovered narcotics and items that were looking like explosives," said Const. Danny Richer.
He said the building was evacuated, and the SWAT team was called in to investigate the nature of the explosives.
It turned out to be a stick of dynamite.
Police arrested two men, aged 28 and 22, along with a 25-year-old woman after seizing the drugs and the dynamite.
Investigators are waiting for a search warrant to be able to return to the apartment and search further.