⚡ 1480 RENAISSANCE DR

MEMORANDUM

TO: Sunland America Corp. Development Team

FROM: Senior BESS Site Evaluation Analyst

DATE: October 26, 2023

SUBJECT: Comprehensive Site Diligence Analysis for "Project Renaissance"

PROPERTY: 1480 RENAISSANCE DR, Park Ridge, Cook County, IL (APN: 09221100050000)

This report provides a comprehensive due diligence analysis for the potential development of a distribution-scale (≤5MW) Battery Energy Storage System (BESS) at the subject property. The analysis identifies significant opportunities related to federal incentives but also flags critical risks, primarily concerning grid interconnection and regulatory approval, that must be addressed immediately.

1. Site Access & Topography

Road Access & Feasibility: The site is located in a developed commercial/office park in Park Ridge, a suburb of Chicago. Primary access appears to be from Renaissance Drive and is expected to be via paved, well-maintained public roads capable of handling heavy truck traffic. A desktop review suggests sufficient turning radii for tractor-trailers delivering battery containers and transformers. Requires Verification: A site visit is necessary to confirm road conditions, identify any low-hanging utility lines, and verify bridge weight limits on the delivery route.

Topography & Equipment Access: As the property is in a developed office park in a geographically flat region, the terrain is presumed to be level and graded. This is highly favorable for BESS construction, minimizing civil engineering and earthwork costs. Heavy equipment, including cranes for setting transformers and battery enclosures, should have excellent access to the developable area of the parcel.

Easement Concerns: There is a significant discrepancy in the provided data regarding parcel size: "Total Acres: 35.02" versus "Parcel Acres (Regrid): 2.97559". This analysis assumes the smaller 2.97-acre parcel is the correct subject property. This smaller size makes the project layout tight and highly sensitive to any encumbrances. A full title report is a critical next step to identify any utility easements (power, water, sewer, communications) or access easements that could sterilize portions of the land and render the project infeasible.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is currently "Unknown". This is a critical data gap. If the site is located within a Special Flood Hazard Area (e.g., Zone A or AE), development will be significantly more complex and costly. All critical equipment would need to be elevated above the Base Flood Elevation (BFE), potentially requiring extensive civil work or making the site financially unviable. Verification via the FEMA Flood Map Service Center is an immediate priority.

Wetlands: The presence of wetlands is "Unknown". A desktop review using the National Wetlands Inventory (NWI) is required. If potential wetlands are identified, a formal wetlands delineation will be necessary. The presence of jurisdictional wetlands would trigger significant setbacks (typically 50-100 feet) and complex permitting through the Army Corps of Engineers, which could severely constrain the usable area on a sub-3-acre parcel.

Habitat & Species: The data indicates no critical habitat or protected areas on site, which is a significant positive. The developed nature of the surrounding area reduces the risk of encountering endangered species. A desktop screening using the USFWS IPaC tool is recommended to confirm and document the lack of sensitive species.

Brownfield/Superfund Status: While there is a known contamination site within two miles, the subject property itself is not listed. However, its history as a commercial property means a Phase I Environmental Site Assessment (ESA) is essential. A key opportunity exists here: if the Phase I ESA identifies a Recognized Environmental Condition (REC) that qualifies the site as a "brownfield" under IRA guidelines, the project would be eligible for the 10% brownfield ITC adder. This presents a potential financial advantage that warrants investigation.

Pipeline Proximity: The absence of major gas pipelines within a 3-mile radius is a major safety and layout advantage, eliminating risks associated with blast zones and pipeline operator restrictions.

3. Grid Infrastructure & Interconnection

Substation & POI: This is the most critical unknown for the project. There is no data on the nearest substation or a viable distribution feeder. The nearest identified infrastructure is a 138kV transmission line 1.5 miles away. Tapping a 138kV line for a 5MW BESS is technically and financially infeasible; the cost would be many millions of dollars. The project's only viable path is a distribution-level interconnection (likely 12.47kV or 34.5kV) with the local utility, Commonwealth Edison (ComEd).

Recommended Interconnection: The immediate priority is to identify the nearest 3-phase distribution feeder with sufficient thermal and voltage capacity. This will require analysis of ComEd's system maps (if available) or, more likely, a formal interconnection pre-application.

Cost & Timeline Estimate: Interconnection costs are entirely dependent on the distance and complexity of the connection to a viable feeder.

• Best Case: A simple tap to an adjacent overhead feeder might cost $500,000 - $1.5 million.
• Worst Case: A new dedicated feeder run from a substation over a mile away could exceed $3 million and require extensive easement acquisition.

4. Regulatory & Zoning Analysis

Authority Having Jurisdiction (AHJ): The City of Park Ridge is the primary AHJ for zoning and permitting.

Zoning Compatibility: The site is zoned "O" (Office District). BESS is not a typical use in an office zone and is almost certainly not permitted "by-right". This zoning presents a significant permitting challenge.

Permitting Pathway: The most likely pathway for approval will be a Conditional Use Permit (CUP) or Special Use Permit (SUP). This is a discretionary process that requires public hearings and approval from the Planning Commission and/or City Council. This process introduces significant timeline risk, political risk, and the potential for community opposition (NIMBYism),