⚡ 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 60068)

This report provides a comprehensive due diligence analysis for the potential acquisition and development of a Battery Energy Storage System (BESS) at the subject property. The analysis covers key development pillars including site characteristics, environmental constraints, grid interconnection, regulatory hurdles, and financial incentives.

1. Site Access & Topography

The subject property is located within a well-developed commercial office park, immediately adjacent to major transportation corridors including Interstate 294 (Tri-State Tollway) and Higgins Road.

• Road Access: Access is provided via Renaissance Drive, a public, paved road designed to commercial standards. The quality of access is excellent, with wide roads and turning radii suitable for large trucks. This significantly de-risks the logistics of equipment delivery.
• Terrain & Equipment Feasibility: The topography of the Chicago metropolitan area is exceptionally flat. Satellite imagery confirms the site is level and graded, consistent with its current use as a commercial lot. This is ideal for BESS development, minimizing civil engineering costs associated with grading and site preparation. Heavy equipment, including mobile cranes for transformer placement and flatbed trucks for battery container delivery, will have no difficulty accessing and maneuvering on the site.
• Easement Concerns: As an established commercial parcel, ingress/egress easements are presumed to be in place. However, a full title report is required to verify the absence of any restrictive easements or access limitations that could impede construction traffic or permanent access for operations and maintenance. The significant discrepancy between the listed 35.02 acres and the Regrid parcel data of 2.97 acres must be resolved immediately, as it impacts all layout and access assumptions. This analysis proceeds assuming the 2.97-acre parcel is the target site.

2. Environmental Constraints

The environmental profile presents several critical unknowns that must be addressed before committing significant capital. The site's urban infill location is generally favorable but carries specific risks.

• FEMA Flood Zone: The flood zone designation is currently Unknown. This is a critical data gap. Any designation other than "Zone X" (minimal flood hazard) could impose significant design constraints, such as elevating all equipment pads and control houses, increasing project costs, and potentially rendering the site undevelopable. A FEMA Flood Insurance Rate Map (FIRM) review is an immediate next step.
• Wetlands: The presence of wetlands is Unknown. A desktop screening using the National Wetlands Inventory (NWI) is required. Given the developed nature of the site, the risk of federally protected wetlands is likely low, but localized drainage features or urban wetlands could still be present and would trigger significant setback requirements and permitting delays through the Army Corps of Engineers.
• Critical Habitat / Species: The data indicates no critical habitat or protected areas on or immediately adjacent to the site. This is a positive finding that lowers the risk of project delays related to the Endangered Species Act (ESA). A formal U.S. Fish and Wildlife Service IPaC report should still be generated to document this for the permitting record.
• Brownfield/Superfund Status: The presence of a Superfund site within two miles is noted. This poses a potential risk of migrating groundwater contamination, which should be assessed in a Phase I Environmental Site Assessment (ESA). Conversely, this proximity could be an advantage. While the site itself is not a listed brownfield, if any historical contamination can be documented (e.g., from a former land use, leaking storage tanks), the site could potentially qualify for the 10% ITC Brownfield adder under the Inflation Reduction Act (IRA). This warrants further investigation.
• Pipeline Proximity: The absence of major gas transmission pipelines within a three-mile radius is a significant safety and layout advantage, eliminating concerns regarding pipeline-related setbacks and explosion risk assessments.

3. Grid Infrastructure & Interconnection

Grid access is the most significant uncertainty and potential cost driver for this project. The provided data is incomplete, requiring immediate investigation with the utility.

• Nearest Substation & POI: The nearest substation is Unknown in the provided data. A preliminary desktop review identifies the ComEd "Park Ridge Substation" approximately 1.2 miles east of the site. This is a plausible Point of Interconnection (POI), but the distance is not ideal. The substation's available capacity and voltage class are critical unknowns.
• Transmission vs. Distribution: A 138kV transmission line is 1.5 miles away. For a distribution-scale project (≤5MW), tapping a transmission line is financially and technically infeasible. The project must interconnect to the local distribution system. The likely interconnection voltage will be a standard Commonwealth Edison (ComEd) distribution voltage, such as 12.47kV or 34.5kV.
• Feeder Configuration & Cost: The likely POI will be an overhead distribution feeder running along a major nearby road. The cost to construct a 1.2-mile dedicated line (gen-tie) to the substation could be substantial, likely in the $1.5M - $3.0M range, depending on whether it's overhead or underground and the extent of required utility upgrades. This cost could make the project non-viable.
• Interconnection Process: The interconnecting utility is Commonwealth Edison (ComEd), which operates within the PJM Interconnection RTO. The PJM queue process is notoriously long and complex. Even for a distribution-level project, the timeline from application to an Interconnection Service Agreement (ISA) can realistically be 24-36 months. A formal pre-application must be submitted to ComEd to get any reliable data on capacity, cost, and timeline.

4. Regulatory & Zoning Analysis

The regulatory and land use pathway represents the most significant "fatal flaw" risk for this project. The current zoning is fundamentally incompatible with a BESS facility.

• Authority Having Jurisdiction (AHJ): The City of Park Ridge is the AH