He refused and was deemed a violent risk to himself and others. Police subsequently decided to use apprehension tactics that would deliver the least possible harm including the sponge round.
The sponge round is fired from a 40mm gas launcher and gives police an additional tactical option in dangerous situations such as the capture of McDonald.
It is intended to incapacitate an aggressive, non-compliant person and will commonly cause bruising rather than significant or long-lasting injury.
Until recently the sponge round was only available to the Police Special Tactics Group and a small number of Armed Offenders Squads.
An IPCA investigation was launched following McDonald's arrest. The findings were released this morning, endorsing the police use of the sponge round "when they were faced with apprehending an aggressive and threatening man".
"The first of two sponge rounds was fired at Mr McDonald's legs after CS gas was used to force him out of his car, causing him to stumble. A second round was then fired, distracting him, at the same as a police dog was released, which engaged Mr McDonald and took him to the ground, enabling officers to restrain him," the IPCA report said.
IPCA chairman Judge Sir David Carruthers said although McDonald did not sustain any serious injuries during the incident the Authority was asked by police to undertake an independent investigation given it was the first time the sponge round had been deployed by officers.
The results of that investigation have been reported to the Commissioner of Police.
"The Authority found that the police involved responded appropriately to this situation and that their command and control of the incident was excellent. The Authority also found that the level of force used to apprehend Mr McDonald was justified in the circumstances," said Judge Carruthers.
"While the sponge rounds did not incapacitate Mr McDonald, they were effective in distracting him, and their use in conjunction with the Police Dog Team was effective.
"Police are now planning to make the sponge round available to all Armed Offender Squad groups throughout the country, which the Authority supports."
In a statement police said all Armed Offenders Squads (AOS) will now have access to the sponge round. The access follows a successful operational trial and the IPCA's endorsement.
The round has been available to the Auckland, Wellington and Christchurch AOS and the national Special Tactics Group (STG) since November 2013.
The round will now be made available to the remaining 14 AOS units around the country, who will receive appropriate training in their use.
"The sponge round provides these specialist police staff with an effective tool that can help resolve dangerous incidents from a safe distance, where previously firearms may have been the only remaining option," said Superintendent Chris Scahill.
"While the sponge round is a welcome addition to the range of tools currently available, it's important to stress that no single tactical option is always necessarily fully effective.
These options are more likely to be successful when combined or used in a tiered response."
The 40mm projectile is designed to spread its energy across 4.5 times the surface area, which allows it to also be used at extremely close range with no greater risk of injury to the subject.
"While any use of force by Police carries an element of risk, the conditions under which any tactical option may be used will always be dictated by the actions and behaviour of those we are confronted with at the time," Mr Scahill said.
"That said, use of the sponge round is still likely to be relatively limited, given that it is only available to specialist groups, and will not be viable to use in every situation."