⚡ 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 development of a distribution-scale (≤5MW) Battery Energy Storage System (BESS) at the subject property. The analysis identifies significant opportunities, primarily related to IRA incentives and physical site characteristics, but also flags critical deficiencies and data gaps concerning grid interconnection and regulatory approval that must be resolved before committing further capital.

1. Site Access & Topography

Road Access: The site benefits from excellent public road access. It is located in a well-developed commercial office park directly accessible from Renaissance Drive and South Dee Road. These are wide, paved, and well-maintained roads capable of supporting heavy commercial traffic. Proximity to Interstate 294 (Tri-State Tollway) is a major logistical advantage for equipment and construction crew mobilization.

Topography & Equipment Feasibility: Based on aerial imagery and the general geography of the Chicago metropolitan area, the site is presumed to be flat with minimal grade. This topography is ideal for BESS development, minimizing earthwork and civil engineering costs. The existing road network appears fully capable of handling the delivery of heavy and oversized equipment, including multi-ton transformers, switchgear, and prefabricated battery containers via flatbed trucks. A large crane for setting equipment should have no issue accessing and operating on the site.

Easement Concerns: While road access is public, the parcel is part of a larger, integrated office park development. It is crucial to conduct a full title search to identify any potential access easements, utility easements, or restrictive covenants associated with the park's Covenants, Conditions, and Restrictions (CC&Rs) that could limit or prohibit the development of an energy facility. The parcel size is listed as both 35.02 acres and 2.97 acres (Regrid); this major discrepancy Requires Verification via a title report and ALTA survey to confirm the actual parcel boundaries and leasable area.

2. Environmental Constraints

Flood & Wetlands: FEMA Flood Zone and Wetlands status are currently Unknown. These are critical data gaps representing a potential fatal flaw. A desktop review of FEMA's Flood Insurance Rate Maps (FIRMs) and the National Wetlands Inventory (NWI) is an immediate next step. Any designation within a 100-year floodplain (Zone A/AE) would necessitate costly mitigation, such as building elevated platforms for all equipment, or could render the site undevelopable. Similarly, the presence of jurisdictional wetlands would trigger significant setback requirements and potentially lengthy permitting processes with the U.S. Army Corps of Engineers and Illinois EPA, reducing the buildable area.

Habitat & Protected Lands: The data indicates no critical habitats or protected areas on or near the site. This significantly de-risks the project from an endangered species perspective. A formal check of the USFWS IPaC database is still recommended as a final verification step.

Contamination Risk: The property is not listed as a brownfield, meaning it is not eligible for the 10% IRA brownfield tax credit adder. There is one Superfund site noted within a two-mile radius. While not on the property itself, this proximity warrants a Phase I Environmental Site Assessment (ESA) to ensure no soil or groundwater contamination has migrated to the subject parcel.

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

3. Grid Infrastructure & Interconnection

Grid Proximity: This is the most critical area of uncertainty for the project. The nearest identified infrastructure is a 138kV transmission line owned by Commonwealth Edison (ComEd) located 1.5 miles away. For a distribution-scale project (≤5MW), interconnecting at transmission voltage over this distance would be economically infeasible, with costs likely exceeding $5-10 million.

Substation & Distribution Feeder: The location, voltage, and available capacity of the nearest ComEd distribution substation are Unknown. This is a fatal flaw data gap. The project's viability is entirely dependent on the presence of a nearby 3-phase distribution feeder (likely 12.47kV or 34.5kV) with sufficient hosting capacity. Identifying this Point of Interconnection (POI) is the highest priority diligence item.

Interconnection Pathway & Costs: Assuming a viable distribution feeder is located along an adjacent road (e.g., S. Dee Rd), interconnection costs could range from $750,000 to $2,000,000, depending on the need for line upgrades, re-conductoring, or protection equipment at the substation. The interconnection process will be with ComEd under the PJM RTO tariff. PJM's interconnection queue is notoriously backlogged, and a realistic timeline from application submission to an Interconnection Service Agreement (ISA) is 24-36 months. This long lead time must be factored into the development schedule.

4. Regulatory & Zoning Analysis

Jurisdiction & Zoning: The Authority Having Jurisdiction (AHJ) is the City of Park Ridge.