OAKLEY -- Plans to open a general merchandise and grocery store where the old Centro-Mart building stands have fallen through, but a similar discount market might take its place.

Oakley City Council this week gave a commercial real estate developer the green light to lease the new store it intends to build on that spot in downtown's Oakley Plaza to Grocery Outlet.

Cross Development Corp., which in 2012 signed an agreement to buy the former Centro-Mart building and the land it occupies from the city -- a transaction that's expected to be final very soon -- originally had hammered out a lease agreement with Dollar General Corp. that had the variety store chain opening an outlet with a grocery component in the aging structure.

The Texas-based developer changed its mind, however, deciding instead to replace the building.

Dollar General balked at the new, more costly lease agreement the developer presented and negotiations recently fell apart.

Although some city council members at Tuesday's meeting commented on the somewhat dowdy appearance of the Grocery Outlet in Antioch, councilman Kevin Romick said he's not opposed to the business per se. As long as the building blends in with the two restaurants on either side, the store should be fine, he said.

The next step is for the developer to sign a lease with Grocery Outlet and submit designs for the city's approval. The Centro-Mart building is expected to be demolished and replaced by the end of this year.

Contact Rowena Coetsee at 925-779-7141. Follow her at Twitter.com/RowenaCoetsee.