Updated March 27, 12:50 p.m.

Could Costco be coming to North Riverside? It might just happen.

On Monday, a spokesman for the real estate partnership that owns the Edward Don and Company property at 26th Street and Harlem Avenue, said that the owners “are in discussions” with Costco and are working on a letter of intent.

“A letter of intent is what has been discussed,” said Jerald Much, president of Lincolnwood Developers, which joined with Monroe Investment Partners in 2007 to buy the 19-acre property for $14.75 million.

“It’s not final and either party can back out,” Much said. “Right now it’s leaning that way, but it’s a long way from reality.”

Much declined to get into specifics on what it would take to make Costco a reality in North Riverside, but he mentioned the big-box retailer would like to see the existing warehouse/office building torn down.

However, the partnership is reluctant to do that without an iron-clad guarantee that Costco is coming in.

“We can’t do it if they can back out,” said Much.

The company also has to “firm up village participation” in the form of financial incentives to convince the company to locate in North Riverside.

In February, Much confirmed that a big-box retailer was interested in the site, but did not disclose what company it was. At that time, however, he emphasized the importance of getting the village to react quickly to the opportunity.

“If the village doesn’t step up to the plate or gets too sharp with their pencils, the deal will go astray,” Much said in February.

North Riverside Mayor Ken Krochmal said village officials have still not met with representatives of the real estate partnership. The last time officials met with Much was “the beginning of the year,” according to Krochmal, though he said Village Administrator Guy Belmonte has been trying to set up a meeting with representative from Monroe Investment Partners.

“No one’s come in and said, ‘Here’s the deal,'” said Krochmal.