ALBANY — In a further blow to the downtown entertainment scene, Savannah's, popular for live music and more than 50 draft beers, will close after Monday night.

Co-owner Joe Schaefer said the cause was a real-estate dispute with landlord Harmony Mills South, which owns the large tower at 90 State St., at the corner of State and Pearl streets. It was not due to lack of business, he said.

Uri Kaufman, the developer who owns Harmony Mills South, said he plans to put a day-care facility for toddlers and infants into the Savannah's space by the end of the year.

The end of Savannah's also kills plans by Schaefer and business partner Pete Cusato to open a next-door vodka bar called War and Peace. The pair did extensive and expensive renovations on the space but were not able to open it.

"We're going to lose everything we put into it," Schaefer said.

Savannah's will be open for lunch through late night Thursday and Friday and from 3 p.m. to close Saturday and Monday. Events include "bandaoke" — karaoke backed by a live band — on Thursday, a battle of the bands Friday, 1980s and '90s music with a DJ on Saturday and, for the final bash on Monday, the burlesque show Bing Bamboo Room.

"It's right to end with them," said Schaefer. "They started with us on Day 1. It's a hell of a way to go out."

Kaufman, who is based on Long Island, turned the former Harmony Mills complex in Cohoes into hundreds of apartments and plans to do the same with the sprawling Albany International headquarters in Menands. He said he evicted Savannah's for failure to pay rent. The bar won a temporary injunction in April to halt the eviction but was unable to meet terms of the court order and must vacate the premises by Aug. 31, according to a statement provided by Kaufman's office.

Savannah's attorney James Linnan disputed Kaufman's account and said the bar relinquished its lease.

The Savannah's location has been a bar for more than 40 years, the last four as under Schaefer and Cusato, who informally renamed Savannah's as The Dublin Underground after a 2009 expansion.

It will be at least the third closure of a Pearl Street bar in less than two months. Jillian's said farewell Aug. 11 after 13 years in business, and the neighboring R Bar, an attempt to succeed Envy Lounge, was shuttered at the end of June after 14 months. The fate of Figure 10 Lounge, about a block north of the pair, is uncertain; it has been open for only occasional Saturday nights in recent months, and last week it was denied a cabaret license, required by the city for bars and nightclubs that wish to offer live music, DJs or karaoke. Figure 10's owner could not be reached for comment.

Yet another downtown eating-and-drinking establishment, The Brown Derby restaurant, half a block from North Pearl Street on Clinton Avenue, closes after dinner service on Saturday.

Georgette Steffens, executive director of the Downtown Albany Business Improvement District, said the closure of Savannah's saddens her.

"They have a long and good reputation in downtown, and they provided a really needed service, whether it was during lunch at that end of Pearl Street or by drawing an older demographic at night that wasn't being served elsewhere," she said.

But, she said, "We've already had people calling us about" the day care. There currently is no day care facility in the core downtown business district, she said, and parents are eager to have a place where they can visit their children at lunch or that is an easy walk from their jobs. Kaufman says there are 55,000 office workers employed within a mile of his new day care location.

"There's a tremendous demand for it," he said.

When the current state and the future of the North Pearl Street entertainment strip blew up into a hubbub earlier this month after Jillian's owner said "People are afraid to come to downtown Albany," city officials, Steffens and other downtown boosters rallied to its defense. The bar, club and restaurant closures, they said, were part of the natural maturation of downtown from a focus on entertainment to a more diversified zone with burgeoning residential development. Day care is a positive part of the mix, Steffens said.

Schaefer said he and Cusato cherish the customers and friends they've made at Savannah's and hope to reopen in a different location in downtown Albany.

"We love the people of Albany. Pete and I have been blessed with serving so many good people, and we have gotten a ton of support from the city," he said. "We'd love to come back."

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