⚡ 1480 RENAISSANCE DR

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)

FINAL RECOMMENDATION: MAYBE

This report provides a comprehensive due diligence analysis for the subject property for the development of a distribution-scale (≤5MW) Battery Energy Storage System (BESS). While the site benefits from a critical IRA tax incentive, it carries significant risks related to grid interconnection, regulatory approval, and unknown environmental constraints. Aggressive de-risking is required before committing further capital.

1. Site Access & Topography

Road Access & Equipment Delivery: The site has direct frontage on Renaissance Drive, a public, paved road within a commercial/office park. Based on satellite imagery, the road appears to be well-maintained and sufficiently wide to accommodate heavy-haul and oversized vehicles, including low-boy trailers for transformers and step-deck trailers for BESS container delivery. Access from major thoroughfares like I-294 appears straightforward, which is a significant logistical advantage.

Terrain & Buildability: The property is located in the greater Chicago metropolitan area, and as expected, the topography is exceptionally flat. This is ideal for BESS development, as it will minimize civil engineering and site preparation costs. No significant grading will likely be required, reducing construction timelines and expenses.

On-Site Access: The primary challenge is the parcel configuration and internal access. There is a notable discrepancy in the provided data: the primary record lists 35.02 acres, while the Regrid data indicates a 2.97-acre parcel associated with the APN. Assuming the 2.97-acre parcel is the target, careful site layout will be required to accommodate a 5MW BESS footprint, required electrical balance-of-plant, and adequate turnaround space for construction and maintenance vehicles. The existing office building and parking lot on the parcel would need to be demolished and removed.

Easement Concerns: Requires Verification. A full ALTA survey and title report are necessary to identify any utility, access, or drainage easements that may encumber the property. Existing easements could significantly constrain the buildable area and dictate the final site layout.

2. Environmental Constraints

FEMA Flood Zone: Requires Verification. The FEMA flood zone designation is currently unknown. This is a critical risk. If the site is located within a 100-year floodplain (e.g., Zone AE), all equipment would need to be elevated above the Base Flood Elevation (BFE), dramatically increasing foundation and structural costs. A location within a floodway would likely be a fatal flaw. A FEMA FIRMette must be generated as a priority first step.

Wetlands: Requires Verification. The presence of jurisdictional wetlands is unknown. A desktop review of the National Wetlands Inventory (NWI) is an immediate next step. If potential wetlands are identified, a formal wetland delineation would be required. The presence of wetlands would trigger significant setbacks (typically 50-100 feet) and could reduce the buildable area to a point of infeasibility, especially on a smaller ~3-acre parcel.

Critical Habitat / Endangered Species: The data indicates no critical habitat or protected areas on or immediately adjacent to the site. This is a positive finding that lowers the risk of project delays or mitigation requirements from the U.S. Fish and Wildlife Service (USFWS).

Brownfield/Superfund Status: The property is not listed as a Superfund site. However, its status as a potential brownfield is unknown. The presence of a commercial building and extensive paved surfaces suggests potential for contamination (e.g., from historical HVAC systems, hydraulic elevators). A Phase I Environmental Site Assessment (ESA) is mandatory. This presents both a risk and a major opportunity. If the site can be classified as a brownfield per IRA guidelines, the project would be eligible for the 10% brownfield ITC adder, significantly improving project economics.

Pipeline Proximity: No major gas transmission pipelines are identified within a 3-mile radius. This is a significant safety and permitting advantage, eliminating concerns related to pipeline explosion risk, setbacks, and operator consultations.

3. Grid Infrastructure & Interconnection

Substation & Feeder: Requires Verification. This is the most significant data gap and the highest project risk. There is no data on the nearest substation or the local distribution feeder. Based on the commercial setting, it is highly probable that a 3-phase distribution feeder (likely 12.47kV, operated by Commonwealth Edison) runs along Renaissance Drive or a nearby road. The available capacity of this feeder is the single most important factor for project viability. Without sufficient capacity, the project would require extensive, cost-prohibitive upgrades, such as a new dedicated feeder from a distant substation.

Transmission Infrastructure: A 138kV ComEd transmission line is located 1.5 miles from the site. For a ≤5MW project, a transmission-level interconnection is not economically viable. The cost to build a 1.5-mile gen-tie line and construct a new switching station would be many millions of dollars. Therefore, this project is entirely dependent on a viable distribution-level interconnection.

Interconnection Cost & Timeline: The interconnection cost is highly speculative. A best-case scenario involving a simple tap to an adjacent, high-capacity feeder might be in the $750,000 - $1.5 million range. A worst-case scenario requiring significant feeder upgrades or a new feeder run could easily exceed $3 - $5 million. The interconnecting utility is Commonwealth Edison (ComEd), which is within the PJM RTO. The PJM interconnection queue has experienced significant backlogs. Even for a distribution-level project, the timeline from