GILROY, Calif.- An idea for a strip club in Gilroy is yanked nearly as fast as it was announced.

A California club owner wanted to open up a topless bar near the Gilroy outlet center on San Ysidro Ave., but his plans have been scratched. Gilroy city planners say the business owner, based out of Saratoga, submitted an application to the city back in December for this strip club idea. The city says he wanted to take over the El Amigo Restaurant, which is going out of business.

Both the Gilroy Police Department and City Planning Department were reviewing the application. In terms of land use, the city planners recommended approval of the club. They said it met all the land use requirements.

But in a new twist learned Tuesday, city planners said Home Depot, who leases the property, sent a letter from their lawyers to the applicant saying legally they can’t and won’t allow this kind of club on the premises.

“Home Depot had restrictions on alcohol sales there and what is generated, it’s like 20 percent, which is a lot less than what a strip club would generate,” said Community Development Director Wendie Rooney.

The application was about to go before the planning commission meeting scheduled this Thursday. City planners say the club would probably have gone before the city council for a vote. The city says they are still waiting on a formal withdrawal from the applicant.