Water damage too extensive for Pearl Ultralounge to reopen, owner says on Facebook

Pearl Ultralounge, an Ala Moana Center nightclub that closed for renovations in July, will not reopen due to what owner Mike Norton described as years of water damage and mold intrusion caused by leaks from an upstairs tenant.

The club closed July 31 and filed a lawsuit against upstairs neighbor Romano’s Macaroni Grill in August.

Norton said on Facebook that "while these legal issues are ongoing, the rent, the payroll, the monthly expenses and other costs have not been being paid and the water damage and mold remediation has not begun due to the high cost to do so. Because of this, the landlord has decided to take back the space."

Scott Creel, spokesman for General Growth Properties, owner of Ala Moana Center, would not address water damage allegations or what steps might be taken to prepare the former Pearl space for another tenant "because this is a legal matter between two tenants."

Norton further posted on Facebook, "It is with heavy heart and utter disappointment in the system that I write to you to inform you that Pearl will not be reopening."

In the August lawsuit, Pearl alleged that improper drainage, defective or deteriorated seals, clogged drains or clogged piping upstairs at Romano’s caused water to overflow into the nightclub. The suit alleged that water seepage damaged its ceiling and walls, allowing for growth of what it called toxic black mold.

At the time, Pearl estimated costs at $65,000 for cleaning, $20,000 for consultant fees and $1 million for interior reconstruction. Pearl cited $210,000 in monthly losses during the shutdown and $160,000 a month to maintain its lease and employee payroll.

Romano’s spokesman Jay Kaneshiro issued a written response to the suit denying any knowledge of water or drainage problems at the restaurant and asserting that "we are obviously not responsible for the upkeep of Pearl’s facilities."