⚡ 1480 RENAISSANCE DR

MEMORANDUM

TO: Sunland America Corp. Investment Committee
FROM: Senior BESS Site Evaluation Analyst
DATE: October 26, 2023
SUBJECT: Comprehensive Site Diligence Analysis for "Project O'Hare" (1480 Renaissance Dr, Park Ridge, IL)

This report provides a comprehensive due diligence analysis for the property located at 1480 Renaissance Dr, Park Ridge, IL (APN: 09221100050000) for its suitability as a distribution-scale Battery Energy Storage System (BESS) project. The analysis concludes with a suitability score, a summary of key risks, and recommended next steps.

1. Site Access & Topography

The subject property is located within a well-developed commercial office park, immediately adjacent to the I-294 (Tri-State Tollway) and in close proximity to O'Hare International Airport. This location provides excellent logistical advantages.

• Road Access Quality: Access is considered excellent. The site is served by Renaissance Drive and South Dee Road, which are wide, paved, multi-lane commercial roads designed for significant traffic. Access from major highways is direct and straightforward.
• Equipment Delivery Feasibility: The existing road network can easily accommodate heavy-haul trucks required for delivering large equipment such as 40-foot battery containers, power conversion systems (PCS), and medium-voltage transformers. No significant overhead line or turning radius constraints are apparent from a desktop review.
• Terrain & Topography: As an existing commercial development in the Chicago metropolitan area, the site is presumed to be flat, graded, and stable. The primary development area would likely be a portion of the existing surface parking lot, which is already prepared for heavy loads. No significant earthwork is anticipated, reducing civil construction costs.
• Easement Concerns: Requires Verification. While direct road frontage is clear, a formal title search is required to identify any existing utility, access, or drainage easements that could encumber the proposed development area. A lease or purchase agreement must explicitly grant unfettered 24/7 construction and operational access.

2. Environmental Constraints

The site's location in a developed urban area presents a mixed environmental profile, with some clear advantages and some critical unknowns.

• FEMA Flood Zone: Requires Verification. The FEMA flood zone designation is currently unknown and represents a critical data gap. Any designation within a 100-year floodplain (e.g., Zone A, AE) would likely render the site undevelopable for critical infrastructure like BESS or require costly mitigation measures (e.g., building up the pad elevation), severely impacting project economics.
• Wetlands: Requires Verification. The presence of jurisdictional wetlands is unknown. While less likely on a paved, developed parcel, a desktop review of the National Wetlands Inventory (NWI) is a necessary first step, followed by a formal wetlands delineation if any indicators are present. Any wetlands would trigger significant setbacks and permitting hurdles.
• Critical Habitat / Endangered Species: No critical habitats or protected areas are identified in the immediate vicinity, which is expected for a dense urban location. This is considered a low-risk factor.
• Brownfield/Superfund Status: There is one Superfund site noted approximately two miles away, but it does not directly impact the subject parcel. The key question is whether our site could qualify as a "brownfield" for the 10% ITC adder. Given its current use as a modern office building, this is highly unlikely unless there is a documented history of contamination from a prior land use. A Phase I Environmental Site Assessment (ESA) is required to confirm the site's environmental condition and rule out any liability from historical contamination. The IRA bonus is an opportunity, but the risk of actual contamination is a liability.
• Pipeline Proximity: No major gas transmission pipelines are identified within a 3-mile radius, mitigating risks associated with pipeline-related setbacks and safety protocols.

3. Grid Infrastructure & Interconnection

Grid access is the single most significant uncertainty for this site. The viability of the project is entirely dependent on the availability of a suitable distribution-level Point of Interconnection (POI).

• Nearest Substation: Requires Verification. The nearest substation name, distance, and available capacity are unknown. This is a fatal flaw in the current data. Desktop analysis using satellite imagery suggests potential distribution infrastructure in the area, but a formal inquiry with the utility is essential.
• Transmission vs. Distribution: A 138kV Commonwealth Edison (ComEd) transmission line is located 1.5 miles away. This is not a viable POI for a distribution-scale (≤5MW) project due to prohibitive interconnection costs (requiring a new project-specific substation) and complexity. The project must interconnect to a local distribution feeder.
• Likely Interconnection: The target interconnection will be a 12.47kV or similar ComEd distribution feeder. Overhead lines appear to run along nearby roads, but their capacity, voltage, and circuit configuration (e.g., 3-phase) are unknown. The project's feasibility hinges on tapping into a robust feeder with sufficient hosting capacity without requiring major upgrades.
• Cost & Timeline Estimate: Assuming a viable feeder is located on or adjacent to the property line, interconnection costs could be in the $500k - $1.5M range. If the feeder requires significant upgrades (re-conductoring, substation breaker upgrades), costs could easily exceed $2M - $3M+. The interconnection process with ComEd, which operates within the PJM RTO, is notoriously slow. Timelines from application to commercial operation can range from 24 to 48+ months.
• Utility: The interconnecting utility is presumed to be Commonwealth Edison (ComEd).

4. Regulatory & Zoning Analysis

The regulatory pathway presents a moderate to high level of risk due to the site's current zoning designation.

• Authority Having Jurisdiction (AHJ): The City of Park Ridge, Illinois.
• Zoning Compatibility: The parcel is zoned 'O' - Office District. BESS facilities are not typically a "by-right" (permitted) use in a commercial office zone. This use is not explicitly defined in the Park Ridge zoning code, which creates uncertainty.
• Permitting Pathway: The most likely pathway is a Special Use Permit (SUP) or a Conditional Use Permit (CUP). This process involves discretionary review by the Planning and Zoning Commission and ultimate approval by the City Council. It requires public hearings, which introduces the risk of community opposition ("NIMBYism"), potential for costly site design requirements, and significant delays. A simple building permit will not be sufficient.
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• Setback Requirements: Requires Verification. Specific BESS setbacks are likely not defined. The project would likely need to adhere to standard commercial setbacks for the 'O' district, plus any additional buffers required by the AHJ and the fire department (e.g., based on NFPA 855 standards) during the SUP process.
• Moratorium Risk: There is no known moratorium on BESS development in Park Ridge, but this should be confirmed with city planning staff.