Police Academy - The Blue Oyster Bar Song Site

The scenes in the first Police Academy (1984) were filmed at the Silver Dollar Room in Toronto, which was actually a blues and bluegrass venue in real life.

The Blue Oyster Bar is depicted as a stereotypical leathermen/bear gay bar. Police Academy - The Blue Oyster Bar Song

The specific version heard in the films was arranged by Jean-Marc Dompierre and performed by his orchestra. The scenes in the first Police Academy (1984)

It serves as a recurring musical "trap" or punchline. Whenever unsuspecting characters (typically antagonists like Lt. Harris or Proctor) enter the bar, the music triggers a sequence where they are forced to dance with the "leathermen" patrons. Scene Context & Trivia Police Academy - The Blue Oyster Bar Song