⚡ 1480 RENAISSANCE DR

MEMORANDUM

TO: Sunland America Corp. Development Committee

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 acquisition and development of a distribution-scale Battery Energy Storage System (BESS) at the subject property. The analysis covers key development pillars including site characteristics, environmental constraints, grid infrastructure, regulatory hurdles, and financial incentives. A final recommendation is provided based on a weighted scoring of these factors.

1. Site Access & Topography

Road Access: The site has direct frontage on Renaissance Drive, which is a public, paved road within a developed commercial office park. Based on satellite imagery, the local road network appears to be in good condition and is designed to accommodate commercial traffic, including delivery trucks. This is a significant advantage for both construction and long-term operations and maintenance access.

Terrain & Equipment Feasibility: The property is located in Park Ridge, IL, a region characterized by generally flat topography. The existing site is developed with a multi-story office building and associated surface parking, indicating it is already graded and level. This existing flat terrain is ideal for BESS development, minimizing the need for extensive civil work. Access for heavy equipment, including cranes for setting transformers and battery containers, appears feasible via the existing road network and the large, paved areas on the parcel. No immediate obstacles like low-clearance bridges or restrictive weight-limit roads are apparent, though this Requires Verification through a formal logistics survey.

Easement Concerns: As a developed commercial parcel, it is almost certain that multiple utility and access easements already encumber the property. A full title report is a critical next step to identify the location and restrictions of any existing easements for electricity, water, sewer, and telecommunications, as these could significantly constrain the usable area for BESS equipment placement.

2. Environmental Constraints

Flood & Wetlands: The FEMA Flood Zone and wetlands status are currently Unknown. This represents a significant data gap and a potential fatal flaw. A high-priority next step is to conduct a desktop review using the FEMA Flood Insurance Rate Map (FIRM) and the National Wetlands Inventory (NWI). Any presence within a 100-year floodplain (e.g., Zone AE) would necessitate costly mitigation, such as elevating all equipment pads and control houses, or could render the site undevelopable. Similarly, the presence of jurisdictional wetlands would trigger setback requirements and potentially lengthy permitting through the U.S. Army Corps of Engineers.

Habitat & Protected Lands: The data indicates no critical habitats for endangered species or designated protected areas on or immediately adjacent to the site. This significantly de-risks the project from a wildlife and ecological permitting perspective.

Contamination Status: The property is not listed as a brownfield or superfund site, but there is one such site within a two-mile radius. While this proximity poses a low risk of migrating contamination, the key consideration is whether this parcel could qualify as a brownfield under IRA guidelines (e.g., through a Phase I/II Environmental Site Assessment identifying recognized environmental conditions). The current use as an office building makes this less likely, but if qualification is achieved, it would unlock a valuable 10% ITC adder. This presents a potential opportunity rather than a risk.

Other Considerations: The site is not within the Chesapeake Bay Critical Area. The absence of oil and gas wells or major pipelines within a three-mile radius is a major safety and layout advantage, eliminating concerns about explosion risks and associated setbacks.

3. Grid Infrastructure & Interconnection

Grid Proximity: This is the most critical and highest-risk aspect of the site. The nearest identified infrastructure is a 138kV Commonwealth Edison (ComEd) transmission line located 1.5 miles away. For a distribution-scale project (≤5MW), a transmission-level interconnection is financially and technically infeasible. The viability of this site is entirely dependent on the proximity and capacity of a local ComEd distribution feeder.

Substation & Feeder: The distance and voltage of the nearest distribution substation are Unknown. This is a fatal flaw if a suitable Point of Interconnection (POI) is not located on or adjacent to the property. A desktop search suggests the Park Ridge and Edison Park substations may be in the vicinity, but their distribution boundaries and capacity are unknown. The project will likely target an interconnection to a 12.47kV or 34.5kV three-phase distribution circuit, which are common in this area. The presence and configuration (overhead vs. underground) of a suitable feeder along Renaissance Drive must be verified immediately.

Cost & Timeline Estimate: Interconnection costs are highly uncertain without a defined POI. If a suitable distribution feeder with adequate capacity is adjacent to the site, costs could be in the range of $500k - $1.5M. However, if a new feeder extension is required, costs can easily exceed $1M per mile, making the project uneconomical. The interconnection process with ComEd