The Dancitron was a a popular dance club frequented by people with hilariously ugly clothing. It was also a front for some kind of a Decepticon plot, courtesy of Starscream and Soundwave. They used Soundwave's abilities to hypnotize patrons into building something large and mysterious. As luck would have it, Raoul discovered that the hypnotism could be broken by getting its victims wet.
The Dancitron was later destroyed as a result of a battle between Soundwave and Blaster.
It wasn't a very good plan.