⚡ 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 property located at 1480 Renaissance Drive in Park Ridge, Illinois. The analysis evaluates the site's suitability for a distribution-scale (≤5MW) Battery Energy Storage System (BESS) project. The site presents a compelling opportunity due to its location within a high-value energy market and eligibility for key IRA incentives, but it also carries significant regulatory and interconnection risks that must be addressed.

1. Site Access & Topography

Road Access & Feasibility: The site has excellent access. It is located within a modern commercial office park directly adjacent to Interstate 294. The property is served by Renaissance Drive, a well-maintained, multi-lane public road capable of handling heavy truck traffic. This high-quality access is a significant advantage for both construction and long-term operations and maintenance.

Terrain & Equipment Access: The topography of Cook County is exceptionally flat, and this site is no exception. It appears to be level-graded as part of the office park development. This eliminates the need for significant earthwork, reducing construction costs and timelines. The existing road network within the park and the likely presence of large parking areas provide ample space for laydown and maneuvering of heavy equipment, including mobile cranes, transformers, and BESS container delivery trucks.

Easement Concerns: While access to the parcel itself is public, its location within an integrated office park development suggests a high likelihood of existing easements. These could include shared access easements, utility easements for power/water/sewer, and potentially restrictive covenants governing land use and aesthetics. A full ALTA survey and title report are required to identify any encumbrances that could conflict with BESS development or dictate equipment placement.

2. Environmental Constraints

FEMA Flood Zone & Wetlands: The FEMA flood zone and wetlands status are currently Unknown. This represents a critical data gap and a potential fatal flaw. The site is located approximately 1.5 miles east of the Des Plaines River, a known floodway. A desktop analysis using FEMA and National Wetlands Inventory (NWI) maps must be conducted immediately. Any designation within a 100-year floodplain (Zone AE) or the presence of jurisdictional wetlands would impose significant siting constraints, require costly mitigation, or render the site undevelopable.

Habitat & Protected Species: The data indicates no critical habitats or protected areas on or immediately adjacent to the site. Given its long-standing development within a commercial zone, the risk of encountering endangered species is considered very low. This should be confirmed via the USFWS IPaC tool as a standard diligence step.

Brownfield/Superfund Status: The subject parcel is not identified as a brownfield. While this means we cannot claim the 10% IRA brownfield tax credit adder, it also reduces the risk of legacy contamination issues. A Superfund site is noted within a 2-mile radius; however, its distance makes direct impact unlikely. A Phase I Environmental Site Assessment (ESA) is nonetheless required to confirm the absence of on-site contamination and evaluate any potential vapor intrusion risks from nearby sources.

Pipeline Proximity: No major gas transmission pipelines are identified within a 3-mile radius. This is a significant safety and design advantage, as it removes the need for specialized pipeline setback analysis and potential blast-proof container specifications.

3. Grid Infrastructure & Interconnection

Utility & Substation Proximity: The interconnecting utility is Commonwealth Edison (ComEd), an Exelon company. The provided data lacks information on the nearest substation, a major deficiency. However, satellite imagery analysis reveals a substantial electrical substation approximately 0.6 miles east of the parcel, across I-294. This is the likely point of interconnection (POI). The short distance is highly favorable for minimizing the cost of a new feeder line.

Interconnection Voltage & Cost: The nearby 138kV transmission line is too distant (1.5 miles) and at an inappropriate voltage for a distribution-scale project. The interconnection will be at the distribution level, likely at 12.47kV or 34.5kV, via the nearby substation. Assuming a direct underground feeder run of approximately 0.75 miles (including routing), the interconnection cost is estimated to be in the $1.5M - $3.5M range. This is highly speculative and dependent on feeder availability, required substation upgrades, and ComEd's specific requirements.

Interconnection Process & Timeline: ComEd's interconnection process is governed by the PJM Interconnection queue. The PJM queue is notoriously long and complex, with timelines often exceeding 24-36 months from application to commercial operation. This represents a significant project timeline risk. A formal pre-application request must be submitted to ComEd immediately to get an initial assessment of feeder capacity and potential grid constraints, which will inform our bid strategy and financial model.

4. Regulatory & Zoning Analysis

Jurisdiction & Zoning: The Authority Having Jurisdiction (AHJ) is the City of Park Ridge. The parcel is zoned "O - Office District." Battery energy storage is not a listed use in this district and is fundamentally incompatible with the current zoning classification. This is the single greatest risk to the project.

Permitting Pathway: Development is not possible by-right. The project will require a discretionary permit, most likely a Conditional Use Permit (CUP) or a Special Exception. This process involves public hearings, planning commission review, and city council approval. It introduces significant entitlement risk, a timeline of at least 6-12 months, and the potential for project-killing conditions of approval or outright denial. Early, strategic engagement with Park Ridge's Community Preservation and Development department is critical.

Setbacks & Restrictions: BESS-specific setbacks are not