⚡ 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"

PROPERTY: 1480 RENAISSANCE DR, Park Ridge, Cook County, IL (APN: 09221100050000)

This report provides a comprehensive due diligence analysis for the potential development of a distribution-scale (≤5MW) Battery Energy Storage System (BESS) at the subject property. The analysis identifies significant data gaps and material risks, particularly concerning grid interconnection and local zoning. However, the site's qualification for lucrative IRA incentives warrants a preliminary, low-cost investigation before a final decision is made.

1. Site Access & Topography

Road Access: The property has direct frontage on Renaissance Drive, a paved public road within a well-developed commercial office park. General access is excellent, with proximity to major thoroughfares like Higgins Road and I-294.

Terrain & Equipment Feasibility: The Chicagoland area is exceptionally flat, and this site is no exception. The topography is presumed to be level and stable, which is ideal for BESS construction, minimizing grading costs. The existing road network within the office park appears robust and capable of handling heavy truck traffic required for delivering large equipment, including battery containers, switchgear, and a main power transformer.

Easement Concerns: A significant concern is the potential for restrictive covenants or access easements associated with the office park's ownership structure. While access to the parcel from the public right-of-way is clear, internal circulation for construction traffic may be subject to limitations. A title report and ALTA survey are required to verify unencumbered access and identify any use restrictions that could prohibit industrial equipment like a BESS. There is also a major discrepancy between the listed "Total Acres" of 35.02 and the Regrid parcel size of 2.97 acres. Our analysis assumes the 2.97-acre parcel is the target, which is a workable but potentially tight footprint for a 5MW project once setbacks are applied.

2. Environmental Constraints

Flood Zone & Wetlands: The FEMA flood zone and wetlands status are both listed as "Unknown." These are critical, potentially fatal-flaw data gaps. The property is located approximately 1.5 miles east of the Des Plaines River, elevating the potential for flood risk. Immediate verification via a FEMA FIRMette and a desktop National Wetlands Inventory (NWI) screening is required. Any presence of a Special Flood Hazard Area (SFHA) or jurisdictional wetlands would impose significant design constraints, increase costs, and potentially render the site undevelopable.

Habitat & Protected Areas: The data indicates no critical habitats or protected areas on or near the site, which is a positive finding. This significantly lowers the risk of encountering endangered species issues that could delay or halt development. A routine check of the USFWS IPaC database is still recommended for formal documentation.

Contamination Risk & Opportunity: The presence of a Brownfield/Superfund site within 2 miles is a dual-edged sword. It raises the possibility of contamination on the subject parcel, mandating a Phase I Environmental Site Assessment (ESA). However, if the site itself can be classified as a brownfield (e.g., through the confirmed presence of contamination), it would qualify for a valuable 10% ITC adder under the Inflation Reduction Act (IRA). This presents a strategic opportunity but requires careful environmental vetting.

Other Considerations: The site is not within the Chesapeake Bay Critical Area. The absence of pipelines within a 3-mile radius is a significant safety and layout advantage, eliminating concerns related to pipeline setbacks and explosion risk.

3. Grid Infrastructure & Interconnection

Substation & Distribution Feeder: This is the most critical unknown for the project. No substation data was provided. A desktop review indicates a potential Commonwealth Edison (ComEd) substation approximately 0.5 miles east of the site, but its voltage and available capacity are unknown. The viability of this project is entirely dependent on the proximity and capacity of a suitable 3-phase distribution feeder (likely 12.47kV or 34.5kV). The office park is likely served by underground lines, which could complicate the tap and increase costs compared to an overhead line tap.

Transmission Infrastructure: A 138kV transmission line is 1.5 miles away. This is not a viable Point of Inter