Clay Mazurkewich, who came in a distant third in October's municipal election, is accused of possessing weapons dangerous to the public.
Al Werner, a customer at the Coachman Lounge, says he and Mazurkewich were having a disagreement Wednesday when the would-be politician pulled out a gun.
Police say officers checking on a tip about a man at the bar with a gun found two black replica pellet handguns: one tucked into the front of a man's jacket and another in a holster he was wearing.
Mazurkewich, who is 51, has been released on four conditions that include not drinking alcohol and not visiting any bars.
He's also been ordered to say away from Werner, to submit to searches by police and not to have firearms.
His next court date is set for Jan. 10.
Alyson Edwards with the Saskatoon Police Service said officers drew their guns when they responded to the tip.
"We didn't know if it was a real weapon or not," she said.
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