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A financial tie-up led Willy Street Co-op’s Board of Directors to unanimously vote Monday to terminate the lease for a second downtown location, which was already in the construction process.

The grocery store, which was scheduled to open this month, planned to occupy 8,750 square feet of Metropolitan Place on the corner of West Mifflin and North Broom streets. According to Brendon Smith, communications director for Willy Street Co-op, the co-op was forced to pull out of the lease because the $750,000 the developer guaranteed the store as part of the lease was not provided.

“That was the agreement,” Smith said. He added Willy Street Co-op was going to make changes to the site, “but to be able to make those improvements, we needed to guarantee there would be a certain amount of money from the developer.”

The co-op entered the lease with Buckingham LLC in September 2007. Without money promised by Buckingham LLC, the co-op would be unable to cover staffing costs, contractor costs and legal fees that accumulated quickly in the period between signing the lease and the new store’s opening, Smith said.

“The delay has put substantial stress on the finances of the entire organization,” Anya Firszt, the co-op’s general manager, said in a statement. “Proceeding with this deal would have caused a financial burden that we would have felt for years to come. We have an obligation to preserve the co-op for our staff and member-owners.”

Willy Street Co-op opened in 1974 by a group of people seeking locally grown, natural food. The Williamson Street location was established in 1999 and currently has 14,000 equity-paying members.

In order to avoid losing money and endangering the economic well-being of the store, it was necessary to terminate the lease, according to Renee Lauber, Willy Street Co-op’s board president.

“The developer’s delays have made this deal untenable,” Lauber said in a statement. “Walking away from this deal now is in the best interests of the co-op and its 14,000 owners. I know that this is disappointing to many of our owners. It certainly is to me.”

Although the store will not open at the Metropolitan Place location, Willy Street Co-op is still looking to open another store because of continued growth at the Williamson Street location, according to Smith.

“To manage the growth, we wanted to open a second store to be accessible to more members and more people who would be interested in becoming members because they are interested in organics and locally grown food,” Smith said.

The co-op experienced financial issues with the construction of the Metropolitan Place location, but the store itself is not losing money or customers, according to a statement.

“Despite the problems with the Metropolitan Place, Phase II delay, Willy Street Co-op’s core operations remain strong, and sales and membership are at record levels,” Firszt said. “It just confirms that there is growing demand for the co-op as a unique and healthy alternative grocery retailer. We remain focused on opening a second retail location to better serve our members. The need is clearly there.”