The owner of the popular Lynn's Bakery and Deli is ensuring a former strip club next door can never reopen, by buying the entire plaza.

Roy O'Connor says there are big plans for the mostly vacant plaza on the very busy corner of Dundas Street and Industrial Road in east London.

"I jumped on the chance and wanted to buy it to have a little bit of control of what went next to me and try to make it into a more neighbourhood-friendly plaza."

He is leasing out the vacant space, including what used to be a strip club at the site, and the plaza will soon house a recreational facility and a chocolate lounge.

He's also hoping to attract a restaurant.

"That's what we're looking forward to," O'Connor says. "Complementary businesses that are good for the east end of London and the people in this area."

The former strip club, Famous Flesh Gordon's, closed in 2015, and attempts to reopen it were quashed after a number of failed inspections in subsequent years.

City councillors are now considering a staff recommendation to reduce the number of adult entertainment locations and licenses in the city from four to three.

Councillor Maureen Cassidy says, "I think in the past there had been a high concentration and I think a lot of cities had that problem as well.

"They tended to concentrate around airports or in industrial strips and things like that. And a lot of times…it can bring unsavoury activity along with it."

Renovations are underway at the plaza and O'Connor says he expects new businesses to be up and running as early as next month.