West Covina might need to choose between a strip club and the popular Cuban restaurant Porto’s Bakery & Cafe.

Those are the options on the table for the Crazy Horse property between West Covina’s family-friendly mall and city hall.

Porto’s Bakery & Cafe — which has locations in Downey, Glendale and Burbank — is in escrow to buy the land, but delays in an agreement with the city could leave it open for a strip club instead. The city slapped a moratorium on adult entertainment last February while it began updating its zoning, but they can’t keep the moratorium up forever. Legally, the current zoning allows an X-rated business there, according to officials.

“The sellers were intent on opening up a strip club there, but I think they saw the writing on the wall with the city,” said Kirk Cartozian, the real estate broker representing Porto’s. “We’re paying a pretty penny, to say, ‘Hey, we’ll put it to better use.’ ”

Porto’s Bakery is a bit of a sensation in Los Angeles County, with lines often stretching out the door at its three locations. The bakery was started decades ago in Echo Park by a family of Cuban immigrants.

Porto’s plans to invest $10 million in the property, which includes demolishing the Crazy Horse, former home to the Red Onion and the National Sports Grill, and building a new restaurant. Cartozian would not disclose how much Porto’s offered, but he said its more than the $6 million bid they offered in 2013 for a former Mazda dealership owned by Ziad Alhassen.

The offer for the Crazy Horse is more than the property is worth, Cartozian said.

The West Covina location could bring 175 jobs and is expected to do about $25 million in revenue each year, he said.

The hitch in the deal comes from Porto’s asking for a tax revenue sharing agreement with West Covina that would soften the costs of its investment, Cartozian said. He couldn’t provide specifics, but it would require the city to pay back some taxes after they open shop. Porto’s started eyeing West Covina in 2011 when a demographic analysis showed the city would be a good fit .

“It’s not just the fact that West Covina is a great city and has great demographics for Porto’s type of establishment, but it’s location in the region, it’s easy access from the freeway and visibility — all those factors make it acceptable to pay a premium, but we’re talking about what would be a major construction project,” Cartozian said. “We’re hoping the city would realize that.”

The bakery got subsidies when stores opened in Downey and Burbank.

“We don’t see this as a handout, we see this as a partnership,” Cartozian said. The property has several easements on it that could be difficult to navigate without the city’s assistance, he said.

Councilman Corey Warshaw said he is supportive of Porto’s, but that he couldn’t say if he’d support giving them a tax revenue rebate because he had not seen specifics on the deal.

“I would love to have them, I just don’t know that the city should set a precedent on giving (rebates) to a private business,” he said. “I’m hoping Porto’s sees the value of doing it, but I’d rather see them doing it on their own.”

Warshaw wasn’t concerned about the potential of a strip club opening next to the mall, as other parties have expressed interest in purchasing the land.

“My guess is that if Porto’s didn’t buy it and someone else is willing to pay the same price, the owner would sell it,” Warshaw said.

Councilman Mike Spence said the city could face significant legal costs if officials change the zoning to block the Crazy Horse’s current owners from opening a strip club. Porto’s taking over the property solves that problem.

“I would be for Porto’s to come here, because then my wife wouldn’t drive to Downey to anymore to get it,” Spence said. “It would be great for the city and it would bring jobs, and it’s a great location.”

He wouldn’t discuss the city’s talks with Porto’s because nothing is concrete.

“I don’t think we’re there yet,” he said.

Cartozian said the Porto family is expected to decide whether to move forward this month.

They recently closed a deal to open a bakery in Buena Park.

“We’re looking at other areas, but right now, it’s just Buena Park and hopefully West Covina,” he said.