⚡ 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 "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, but also flags critical risks in zoning and grid interconnection that must be addressed before committing further capital.

1. Site Access & Topography

• Road Access & Equipment Delivery: The site benefits from excellent road access. It is located within a commercial office park directly adjacent to Interstate 294 (Tri-State Tollway) and major arterial roads like W Higgins Rd. The provided data indicates "Public" road access, which is ideal. A preliminary map review shows Renaissance Dr is a wide, paved road suitable for heavy truck traffic.
• Terrain Characteristics: Located in the Chicago metropolitan area, the site is presumed to be flat with minimal grade, which is typical for the region. This significantly reduces earthwork and civil engineering costs. The existing development as an office park confirms the land is stable and developed.
• Heavy Equipment Feasibility: Access for heavy equipment, including mobile cranes, transformers, and containerized BESS units, appears feasible. The proximity to the interstate is a major logistical advantage for equipment delivery. The internal roads of the office park appear capable of handling delivery vehicles, though a turn-radius analysis would be required.
• Easement Concerns: Requires Verification. While primary access is public, a title search is required to identify any potential access easements, utility easements, or restrictive covenants associated with the office park that could limit equipment placement or operational access. The parcel size discrepancy between the county record (35.02 acres, likely for the entire office park) and the Regrid data (2.97 acres, likely the specific parcel) must be clarified immediately to understand the exact project boundary and any associated shared access agreements.

2. Environmental Constraints

• FEMA Flood Zone: Requires Verification. The FEMA flood zone designation is currently unknown. This is a critical data gap. Any designation other than Zone X (minimal flood risk) could impose significant design constraints, require elevated foundations, or render portions of the site undevelopable, increasing costs and impacting project layout.
• Wetlands: Requires Verification. The presence of wetlands is unknown. A desktop National Wetlands Inventory (NWI) screening is an immediate next step. The presence of jurisdictional wetlands would trigger state (IEPA) and federal (USACE) setback requirements and permitting, potentially reducing buildable acreage and extending the development timeline.
• Critical Habitat / Endangered Species: The data indicates no critical habitat or protected areas on site, which is a significant positive. Risk in this category is considered low, though a formal desktop review should confirm this.
• Brownfield/Superfund Status: The property is not listed as a brownfield, but the presence of one Superfund/brownfield site within a 2-mile radius presents both a risk and an opportunity.
  • Risk: A Phase I Environmental Site Assessment (ESA) is mandatory to ensure no contaminant migration (e.g., groundwater plumes) has impacted the subject property.
  • Opportunity (IRA Bonus): Proximity to a brownfield site may allow this project to qualify for the 10% Brownfield ITC adder under the Inflation Reduction Act (IRA). This depends on the specific definition used by the Treasury and whether the AHJ considers it as such. This requires further investigation with a tax advisor.
• Pipeline Proximity: The absence of major gas pipelines within a 3-mile radius is a major safety and design advantage, eliminating concerns regarding pipeline setbacks and potential co-location risks.

3. Grid Infrastructure & Interconnection

• Nearest Substation: Requires Verification. This is the most critical unknown. The distance, voltage, and available capacity of the nearest distribution substation are not identified. Without this information, project viability cannot be determined. The cost and feasibility of interconnection are entirely dependent on this proximity. Identifying the local ComEd substation and its feeder circuits is the highest priority diligence item.
• Transmission Line Proximity: A 138kV Commonwealth Edison (ComEd) transmission line is located 1.5 miles away. For a ≤5MW project, this is not a viable Point of Interconnection (POI) due to the prohibitive cost of a new high-voltage substation. The project's path to grid is via the local distribution network.
• Recommended Interconnection Voltage: The project will interconnect at a distribution voltage, likely 12.47kV or 34.5kV, which are common ComEd distribution voltages. The POI will be an existing or extended distribution feeder line.
• Estimated Cost & Timeline: This is highly speculative without a known POI.
  • Best Case: A feeder with adequate capacity runs adjacent to the parcel. Cost: $750k - $1.5M for switchgear, protection, and a short line extension.
  • Worst Case: The nearest feeder lacks capacity, requiring a new feeder run from the substation and/or significant substation upgrades. Cost: $2.5M+.
  • Timeline: The ComEd interconnection process in Illinois is known to be lengthy. A realistic timeline from application submission to commercial operation is 24-36 months, assuming a relatively straightforward interconnection.
• Feeder Configuration: Requires Verification. Given the office park setting, distribution lines may be underground. This could increase the cost and complexity of the interconnection tap compared to an overhead line.

4. Regulatory & Zoning Analysis

• Authority Having Jurisdiction (AHJ): The City of Park Ridge.
• Zoning Compatibility: The current zoning is "O" (Office District). This is a significant challenge. BESS facilities are not a listed by-right use in a commercial office zone. This zoning is a poor fit and presents a major entitlement risk.
• Permitting Pathway: The most likely pathway is a Special Use Permit (SUP) or a zoning variance. A full rezoning is a less likely but possible requirement. This process will require public hearings, community outreach, and discretionary approval from the Park Ridge City Council and/or Zoning Board of Appeals. This introduces significant timeline risk, political risk, and uncertainty of approval.
• Setback Requirements: Requires Verification. Specific BESS setbacks are likely not codified in Park Ridge's ordinance. They will be negotiated and established as conditions of approval during the SUP process. We