⚡ 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" (1480 Renaissance Dr, Park Ridge, IL)

This report provides a comprehensive due diligence analysis for the potential Battery Energy Storage System (BESS) project located at 1480 Renaissance Dr, Park Ridge, in Cook County, Illinois. The analysis covers critical site attributes, risks, and recommended next steps to determine project viability.

1. Site Access & Topography

Road Access & Equipment Delivery: The site benefits from excellent public road access, situated in a well-developed commercial/office park environment. Renaissance Drive is a paved, public road capable of handling standard commercial traffic. Based on satellite imagery, the surrounding road network, including nearby I-294, appears robust and suitable for the delivery of heavy and oversized equipment, such as 53-foot battery containers, medium-voltage transformers, and switchgear. A detailed swept-path analysis will be required to confirm turning radii into the specific parcel entrance, but initial assessment is positive.

Terrain Characteristics: The property is located in the Chicagoland area, which is characterized by exceptionally flat terrain. Topography is not anticipated to be a significant challenge. Minimal grading will likely be required, reducing civil construction costs and timelines compared to sites with complex topography. The primary civil work will involve establishing a level gravel pad or concrete foundation for the BESS equipment.

Heavy Equipment Access: On-site access for cranes, drill rigs (for foundations), and delivery trucks appears feasible. The key constraint is the internal layout of the existing office park. The parcel itself, noted as approximately 2.98 acres by Regrid, may have limited internal circulation space once existing structures or parking lots are considered. The 35-acre figure in the initial data requires immediate clarification; if the project is part of a larger redevelopment, access is simpler. If it is constrained to the smaller parcel, careful logistical planning is essential.

Easement Concerns: As an established commercial property, legal access via public right-of-way is assumed. However, a title report is required to verify the absence of any restrictive easements (e.g., utility easements, access easements for neighboring properties) that could conflict with the proposed BESS layout. A dedicated utility easement for the interconnection route will need to be secured.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is currently Unknown. This is a critical data gap. Any location within a 100-year floodplain (Zone A/AE) would likely render the site undevelopable for critical infrastructure like a BESS or require significant, costly mitigation (e.g., elevating all equipment). A desktop FEMA map review is an immediate next step.

Wetlands: The presence of wetlands is Unknown. Given the developed nature of the area, jurisdictional wetlands are less likely, but drainage features or remnant pockets could exist. A National Wetlands Inventory (NWI) screening is required, followed by a formal wetland delineation if the screening indicates potential presence. Any identified wetlands would trigger significant setbacks (typically 50-100 feet) and complicate permitting.

Critical Habitat / Endangered Species: The data indicates no critical habitats or protected areas on or immediately adjacent to the site. This significantly de-risks the project from a federal Endangered Species Act perspective. This is a strong positive attribute.

Brownfield/Superfund Status: The presence of a superfund site within two miles is a moderate risk. While not on the parcel itself, it raises the possibility of regional groundwater contamination. A Phase I Environmental Site Assessment (ESA) is mandatory to assess the historical use of the subject property and evaluate any potential contamination pathways from nearby sites. Conversely, if the subject property itself could be classified as a brownfield (e.g., due to prior industrial use or contamination), it could qualify for the 10% Brownfield ITC adder under the IRA, turning a potential liability into a financial advantage. This requires investigation via the Phase I ESA.

Pipeline Proximity: The absence of major gas transmission pipelines within a three-mile radius is a significant safety and layout advantage. This eliminates the need for complex setback calculations and risk assessments associated with pipeline adjacencies.

3. Grid Infrastructure & Interconnection

Nearest Substation & Feeder: This is the most critical unknown for the project. The nearest substation, its available capacity, and the feeder voltage are not identified. A 5MW BESS will require a robust distribution feeder, likely operating at 12.47kV or 34.5kV. The viability and cost of the project are entirely dependent on the distance to, and capacity of, a viable Point of Interconnection (POI). Identifying the local ComEd distribution substation and the specific feeder serving the area is the highest priority diligence item.

Transmission Line Proximity: A 138kV transmission line is located 1.5 miles away. For a distribution-scale project (≤5MW), interconnecting at transmission voltage is financially and technically infeasible. The cost would be prohibitive (likely >$5-10M), and the process is far more complex. This transmission line should be disregarded as a viable POI.

Recommended Interconnection: The only viable path is a distribution-level interconnection to a local Commonwealth Edison (ComEd) feeder. A desktop analysis using utility maps and consultation with an interconnection expert is needed to identify the most likely POI.

Estimated Cost & Timeline: Without a known POI, costs are highly speculative. Assuming a POI is within 0.5 miles, interconnection costs could range from $750,000 to $2,500,000, depending on the scope of utility upgrades required (e.g., re-conductoring, substation breaker upgrades). The ComEd interconnection process, which runs through the PJM Interconnection queue, is notoriously slow. A realistic timeline from application submission to commercial operation is 24-36 months.

4. Regulatory & Zoning Analysis

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

Zoning Compatibility: The current zoning is "O" - Office District. This zoning is highly unlikely to permit a BESS project "by-right." Energy infrastructure is typically not an allowed use in a commercial office zone. This represents a major entitlement risk.

Permitting Pathway: The most probable pathway would be to apply for a Conditional Use Permit (CUP) or Special Exception