At Monday’s North Riverside Village Board meeting, Mayor Ken Krochmal announced during his report to trustees that Costco would be closing on the purchase of 16 acres of land that formerly housed the Edward Don Company on March 7.

The much-anticipated closing will start the clock on a plan that ought to result in the retail giant opening a new warehouse no later than Oct. 31.

The terms of the deal are spelled out in the Business District Redevelopment Agreement passed by the village board on Feb. 4. Costco is paying $5.55 million for the land, which is part of a 20-acre parcel at the northwest corner of 26th Street and Harlem Avenue.

The land is owned by a real estate partnership comprising Monore Development Partners and Pinecrest Associates. The partnership bought the property in 2007 for $14.75 million.

A key part of the deal involves the village of North Riverside paying the real estate partnership $6.8 million to help mitigate their loss on the sale. The village will sell $7 million in debt certificates on March 7 and transfer the partnership’s share to them at the time of the closing.

After the closing, the Edward Don warehouse will be demolished and the site prepared for construction of Costco, which is scheduled to take place this summer.