⚡ 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 O'Hare" - 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 key opportunities, constraints, 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. Located within a well-established commercial office park, the property is served by Renaissance Drive, which connects to major thoroughfares like S. Dee Road and I-90 (Kennedy Expressway). These roads are paved, well-maintained, and designed to accommodate commercial traffic, including semi-trailers. This is highly favorable for the delivery of heavy and oversized BESS equipment, such as battery containers, inverters, and the main power transformer.

Terrain Characteristics: As is typical for the Chicago metropolitan area, the site appears to be exceptionally flat based on satellite imagery. The existing land use is a commercial office building with extensive surface parking. This topography is ideal for BESS development, as it will minimize civil engineering and site grading costs, significantly reducing the overall construction budget and timeline. The existing paved or gravel areas may be suitable for laydown and staging during construction.

Heavy Equipment Accessibility: The primary access points into the office park and onto the parcel appear wide enough for cranes and heavy haul trucks. There are no obvious low-clearance bridges or sharp turns on the immediate access routes that would impede delivery. The buildable area, likely a portion of the existing parking lot, provides a stable, level surface for crane operations needed to set the equipment.

Easement Concerns: Requires Verification. While physical access is strong, the legal right to access must be confirmed. As part of a larger commercial development, the property is almost certainly subject to a complex set of easements (access, utility, parking) and restrictive covenants. A full title commitment must be ordered to ensure that a BESS is not a prohibited use and that our access for construction and operation is guaranteed. Covenants could restrict industrial-style equipment or noise, posing a potential regulatory hurdle.

2. Environmental Constraints

FEMA Flood Zone: Requires Verification. The FEMA flood zone designation is currently unknown. This is a critical, potentially fatal flaw. An immediate review of the FEMA Flood Insurance Rate Maps (FIRMs) is required. If the site is located within a Special Flood Hazard Area (e.g., Zone A or AE), development costs will increase substantially due to the need for elevated foundations, and the project may be deemed uninsurable or un-permittable by the Authority Having Jurisdiction (AHJ).

Wetlands: Requires Verification. The presence of wetlands is unknown. A desktop screening using the U.S. Fish and Wildlife Service's National Wetlands Inventory (NWI) is the immediate next step. If potential wetlands are identified on or near the parcel, a formal wetland delineation will be necessary. The presence of jurisdictional wetlands would trigger significant state (IEPA) and federal (USACE) permitting requirements and mandatory setbacks (typically 50-100 feet), which could severely constrain the buildable area.

Critical Habitat / Endangered Species: The data indicates no critical habitat or protected areas on site, which is a significant positive. This is expected in a highly developed suburban environment. A formal confirmation through the USFWS IPaC tool is still recommended as a standard diligence step.

Brownfield/Superfund Status: The presence of a superfund site within two miles is noted but does not directly impact the subject parcel. However, this raises the possibility that the subject parcel itself—a long-standing commercial property—could have Recognized Environmental Conditions (RECs). This presents both a risk and an opportunity. A Phase I Environmental Site Assessment (ESA) is required. If the Phase I identifies RECs that qualify the site as a "brownfield" under IRA guidelines, the project could be eligible for the 10% Brownfield ITC adder. This would be a major financial benefit.

Pipeline Proximity: The absence of major gas transmission pipelines within a three-mile radius is a key safety and design advantage, eliminating concerns related to blast radius setbacks and complex safety protocols.

3. Grid Infrastructure & Interconnection

Substation & Feasibility: Requires Verification. This is the most significant data gap in the analysis. The nearest substation, its distance, and available capacity are unknown. A viable interconnection is paramount. A desktop review using satellite imagery and utility data is urgently needed to identify the nearest ComEd substation. The project's viability is entirely dependent on the proximity (ideally <1 mile) and thermal capacity of a substation with a suitable distribution bus (e.g., 12.47kV or 34.5kV).

Transmission vs. Distribution Interconnection: The nearby 138kV transmission line is not a viable Point of Interconnection (POI) for a ≤5MW project. The cost of a transmission-level tap and substation would be prohibitive (>$10-15M). Therefore, the project must interconnect to a local ComEd distribution feeder.

Likely Feeder & Cost Estimate: Satellite imagery shows overhead utility poles along S. Dee Road, suggesting the presence of a 3-phase distribution feeder adjacent to the property. This is a very positive sign. If a feeder with sufficient capacity runs along the property boundary, the interconnection cost could be in the range of $750,000 to $2,000,000. However, if the feeder requires significant reconductoring or a new feeder exit from the substation is needed, costs could easily exceed $3,000,000. A formal