Idris Ali-Arowosekila, 18, of De Beauvoir Estate, Hackney, London, has been charged with possession an imitation firearm with intent to cause people to believe that unlawful violence would be used against them or another. This is contrary to section 16A of and Schedule 6 to the Firearms Act 1968.
He has been kept in police custody and will appear before Lincoln Magistrates today (Thursday).
The area from the Ship pub towards Millionhairs hairdressers on Roman Bank was cordoned off for more than an hour on Tuesday evening while the police operation took place.
Local officers and the East Midlands Specialist Operations Team were called in to help.
Chief Insp Jim Tyner of Skegness Police said: “Specialist officers were involved as a precaution and there was no risk to residents or holiday-makers in Skegness.
“I want to send a clear message that violence will not be tolerated and we are committed to keeping Skegness a safe place to live, work and visit.”
Coun Trevor Burnham was among the onlookers during the operation. He said: “From what I hear police have stopped a car from London. There have been two armed response vehicles here but as far as I know no shots were fired.
“An ambulance has been on the scene but it could have on its way somewhere.
“This is my ward so naturally I have stayed and watched the outcome but you don’t expect to see something like this in Skegness.”