⚡ 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 1480 Renaissance Dr, Park Ridge, 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 in Park Ridge, Cook County, Illinois. The analysis identifies significant potential rewards, primarily through federal incentives, but also flags critical unknowns and substantial risks related to grid interconnection and local permitting that must be addressed before committing further capital.

1. Site Access & Topography

• Road Access & Equipment Delivery: The site benefits from frontage on Renaissance Drive, a public road within a developed commercial office park. Initial review of aerial imagery indicates these are paved, well-maintained roads likely capable of supporting heavy truck traffic. Access for low-boy trailers carrying multi-ton transformers and pre-fabricated BESS containers appears feasible. The proximity to major thoroughfares in the Chicago metropolitan area is a logistical advantage.
• Terrain Characteristics: As is typical for the Cook County region, the topography is expected to be very flat. This significantly reduces the need for extensive civil work and grading, lowering potential site preparation costs. A formal topographic survey is still required to confirm precise elevations and drainage patterns.
• Heavy Equipment Access: Direct access from the public road onto the parcel appears straightforward. However, the internal circulation path for a crane and delivery trucks must be carefully planned on the site layout, especially considering the relatively small 2.97-acre parcel size noted by Regrid. The provided 35.02-acre figure appears to be an error and should be disregarded until verified by a title report.
• Easement Concerns: With direct public road access, a dedicated access easement is not anticipated to be a primary concern. However, a title search is required to identify any existing utility easements (e.g., for gas, water, or existing electrical lines) that could cross the property and constrain the buildable area.

2. Environmental Constraints

• FEMA Flood Zone: The FEMA flood zone designation is currently Unknown. This is a critical data gap. If the site is located within a Special Flood Hazard Area (e.g., Zone A or AE), development costs will increase substantially due to requirements for elevating all equipment above the Base Flood Elevation. In a worst-case scenario, it could render the project economically or technically infeasible. Action Item: Immediate desktop FEMA map review is required.
• Wetlands: The presence of wetlands is Unknown. Similar to flood risk, this is a major potential constraint. The presence of jurisdictional wetlands would trigger significant state (IEPA) and federal (USACE) permitting requirements and necessitate setbacks that would reduce the buildable acreage. Action Item: Immediate desktop National Wetlands Inventory (NWI) screening is required, to be followed by a formal wetland delineation if potential wetlands are identified.
• Critical Habitat / Endangered Species: The initial data indicates no critical habitat or protected areas on or near the site. This is a positive indicator, suggesting a low risk of encountering issues related to the Endangered Species Act. This should be confirmed with a standard desktop environmental screening.
• Brownfield/Superfund Status: The property itself is not listed as a brownfield. While there is a superfund site within two miles, it does not impact the subject parcel directly, though it will be noted in a Phase I ESA. Importantly, the project is not eligible for the 10% IRA brownfield tax credit adder unless the site itself meets the specific definition of a brownfield site under federal law, which appears unlikely.
• Pipeline Proximity: The absence of major gas transmission pipelines within a three-mile radius is a significant safety and de-risking factor, eliminating concerns related to pipeline setbacks and explosion risk assessments.

3. Grid Infrastructure & Interconnection

• Nearest Substation: This is the most significant data gap and a potential fatal flaw. The distance, voltage class, and available capacity of the nearest distribution substation are Unknown. Without a viable substation with thermal capacity, the project cannot proceed. Action Item: A desktop grid analysis by a consultant is the highest priority task.
• Transmission Infrastructure: A 138kV Commonwealth Edison (ComEd) transmission line is located 1.5 miles away. This is not a viable Point of Interconnection (POI) for a ≤5MW project. The cost of a 1.5-mile transmission line extension and a dedicated substation would be prohibitively expensive (likely >$10 million).
• Recommended Interconnection: The only feasible path is an interconnection to the local ComEd distribution system. We must identify the 3-phase distribution feeder serving the office park, which is likely 12.47kV or 34.5kV.
• Estimated Cost & Timeline: Interconnection costs are highly uncertain without feeder data. A best-case scenario (tie-in to an adjacent, high-capacity feeder) might be in the $500k - $1M range. A worst-case scenario (requiring a new feeder exit from a distant substation or significant system upgrades) could easily exceed $2M - $3M. The ComEd interconnection study process in Illinois can take 18-24 months or longer from application to an executed Interconnection Agreement.
• Feeder Configuration: