After a four-year battle with the city of Los Angeles and community activists, Home Depot Inc. has decided to pull its plans for a store in Sunland-Tujunga.

Home Depot announced Wednesday morning that the big-box retailer has dropped its lawsuit against the city and no longer plans to pursue its application to open a store in an empty Kmart building on Foothill Boulevard.

“Throughout this process, we complied with all laws and regulations in relation to the site and believe that lawsuit was just. However, given the steps the city is requiring for us to move forward, coupled with the current economic landscape, it simply no longer makes business sense for us to pursue this project,” Kathryn Gallagher, a Home Depot spokeswoman, said in a prepared statement.

Home Depot had filed suit against Los Angeles in November 2007 alleging that the City Council ignored established procedures in revoking its permit to convert the old Kmart store.

Home Depot had acquired the lease from Kmart in 2004 and had already spent $2 million in renovations when the permit to convert was revoked by the City Council, which did so in response to a campaign by Sunland-Tujunga residents to keep Home Depot out of their neighborhood.

At the time, residents voiced concerns over increased traffic, possible problems with parking and the store becoming a haven for day laborers.