⚡ 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 O'Hare" (1480 Renaissance Dr, Park Ridge, IL 60068)

This memorandum provides a comprehensive due diligence analysis for the potential acquisition and development of a Battery Energy Storage System (BESS) project at the subject property. The analysis is based on preliminary data and identifies key risks, opportunities, and recommended next steps.

1. Site Access & Topography

Road Access: The site benefits from excellent public road access. It is located in a well-developed commercial office park, fronting Renaissance Drive with immediate access to major thoroughfares like South Cumberland Avenue and I-294 (Tri-State Tollway). These roads are paved, well-maintained, and designed to accommodate commercial truck traffic.

Equipment Delivery: Feasibility for delivering heavy equipment is high. The existing road network can support low-boy trailers for transporting battery containers, power conversion systems (PCS), and large transformers. A preliminary logistics plan should confirm turning radii and the absence of low-clearance bridges on the final approach, but no significant impediments are anticipated.

Topography & Site Conditions: Based on its location in the greater Chicago area, the site is presumed to be flat with minimal grade, which is ideal for BESS construction as it minimizes earthwork costs. However, a formal topographical survey is required for verification. The current land use as a commercial office building implies the site is already graded and likely has existing utilities that may need to be relocated. A significant discrepancy exists between the county's listed 35.02 acres and Regrid's 2.97 acres for the specific APN. This must be clarified immediately, as 2.97 acres is sufficient for a ≤5MW BESS, but the larger figure may imply a multi-parcel assembly with complex easements.

Easement Concerns: As part of an established office park, the parcel is almost certainly encumbered by multiple easements (access, utility, drainage, etc.). A title report and ALTA survey are critical to identify any restrictions on the buildable envelope that could conflict with the BESS footprint and required setbacks.

2. Environmental Constraints

FEMA Flood Zone & Wetlands: The FEMA flood zone and wetlands status are currently Unknown. This represents a critical and potentially fatal flaw risk. Immediate desktop analysis using FEMA FIRMs and the National Wetlands Inventory (NWI) is required. Any presence of a Special Flood Hazard Area (SFHA) or delineated wetlands would impose significant design constraints, require costly mitigation, and potentially reduce the buildable area to an unviable size.

Habitat & Protected Species: The data indicates no critical habitat or protected areas on or immediately adjacent to the site. Given its location in a developed commercial zone, the risk of encountering endangered species is low. A standard review using the USFWS IPaC tool is recommended for formal documentation.

Brownfield/Superfund Status: The property is not a listed brownfield, but one Superfund site is located within two miles. This proximity, combined with its long-term commercial use, makes a Phase I Environmental Site Assessment (ESA) a mandatory, non-negotiable step. The Phase I ESA will determine the likelihood of on-site contamination. If Recognized Environmental Conditions (RECs) are identified, it could be a significant risk. Conversely, if the site can be qualified as a brownfield under IRA guidelines (e.g., through a Phase II ESA confirming contamination), it would unlock a valuable 10% ITC adder. This presents a dual-edged sword that must be investigated carefully.

Pipeline Proximity: The absence of major gas transmission pipelines within a three-mile radius is a significant safety and permitting advantage, eliminating the need for complex setback analyses and consultations with pipeline operators.

3. Grid Infrastructure & Interconnection

Substation & Feeder: The nearest substation and its available capacity are Unknown. This is the single most critical information gap for this project's viability. A desktop survey using satellite imagery suggests the Park Ridge ComEd Substation is approximately 1.2 miles north of the site. This is a plausible Point of Interconnection (POI), but the specific distribution feeders originating from it, their voltage (likely 12.47kV or 34.5kV), and their hosting capacity must be identified. The project's success hinges on the proximity and capacity of a viable 3-phase distribution feeder.

Transmission Infrastructure: A 138kV Commonwealth Edison (ComEd) transmission line is located 1.5 miles from the site. While this indicates a robust regional grid, a transmission-level interconnection for a ≤5MW project would be prohibitively expensive (estimated $5M - $15M+) and complex. This option should be considered non-viable for a distribution-scale project.

Interconnection Recommendation & Costs: The recommended pathway is a distribution-level interconnection to a local ComEd feeder. The 1.2-mile distance to the likely substation is manageable but not ideal. Interconnection costs are highly variable and dependent on required upgrades. A preliminary estimate ranges from $750,000 to $2,500,000, pending a formal study. This cost could escalate significantly if the feeder requires substantial reconductoring or substation breaker upgrades.

Utility & Queue Process: The interconnecting utility is Commonwealth Edison, which operates within the PJM Interconnection RTO. The PJM generation interconnection queue is notoriously backlogged, with timelines from application to commercial operation often exceeding 3-4 years. Developers must navigate PJM's complex queue reform process, which requires significant financial deposits and adherence to strict milestones. This long and uncertain timeline is a major project risk.

4. Regulatory & Zoning Analysis

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