⚡ 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 1480 Renaissance Dr, Park Ridge, IL (APN: 09221100050000)

The following is a comprehensive due diligence analysis for the subject property located in Park Ridge, Cook County, Illinois. The analysis evaluates the site's suitability for a distribution-scale (≤5MW) Battery Energy Storage System (BESS) project.

1. Site Access & Topography

Road Access: The site has frontage on Renaissance Drive, which is designated as a public road. Satellite imagery review indicates this is a modern, well-paved two-lane road within a commercial office park setting. Access appears to be excellent, with wide roads capable of handling standard commercial traffic.

Terrain & Equipment Feasibility: The property is located in the greater Chicago area, which is characterized by extremely flat topography. We can expect minimal to no grading requirements, significantly reducing site preparation costs. The existing road network within the office park appears robust and designed for semi-truck deliveries, suggesting that heavy equipment, including a mobile crane, transformers, and containerized BESS units, can access the site without major modifications.

Easement Concerns: While the property has direct frontage, a full title report is required to identify any utility easements (UEs), drainage easements, or other encumbrances that could restrict the placement of equipment. The specific point of ingress/egress for construction traffic must be confirmed to ensure it does not conflict with existing tenant operations if the office building is active. Requires Verification: A title commitment is necessary to confirm access rights and identify any restrictive easements.

2. Environmental Constraints

Flood Zone: The FEMA flood zone designation is currently unknown. This is a critical data gap. Any portion of the site located within a 100-year floodplain (e.g., Zone A or AE) would present a significant development challenge, potentially requiring costly elevated foundations for all equipment or rendering the site unsuitable. A FEMA FIRMette must be obtained immediately.

Wetlands: The presence of wetlands is also unknown. A desktop screening using the National Wetlands Inventory (NWI) is the first step. Given the developed nature of the surrounding area, the risk of jurisdictional wetlands may be low, but cannot be dismissed. If potential wetlands are identified, a formal delineation would be required, and any associated state or local setbacks would reduce the buildable acreage.

Habitat & Protected Species: The data indicates no critical habitats or protected areas on or near the site. This is consistent with a developed commercial location and represents a low environmental risk. This should be confirmed with a preliminary check of the USFWS IPaC database.

Brownfield/Superfund Status: The presence of a Superfund site within two miles is noted but does not directly impact the subject parcel. More importantly, the site's history as a commercial property in an urbanized area presents a potential opportunity. It may qualify as a "brownfield" under CERCLA § 101(39), which would provide eligibility for the 10% IRA brownfield tax credit adder. This is a significant financial advantage. Requires Verification: A Phase I Environmental Site Assessment (ESA) is required to determine if the site meets the brownfield definition.

Other Constraints: There are no pipelines or gas wells in the immediate vicinity, which eliminates a common safety and setback risk. The site is not located in the Chesapeake Bay Critical Area.

3. Grid Infrastructure & Interconnection

Substation & Distribution Feeder: This is the most critical unknown for the project. No distribution substation or feeder information was provided. The success of a distribution-scale project is entirely dependent on the proximity and capacity of a suitable 3-phase distribution circuit (typically 12.47kV or 34.5kV in ComEd territory). The absence of this information is a potential fatal flaw. Immediate investigation is required to locate the nearest substation and identify feeders running along Renaissance Drive or adjacent roads.

Transmission Infrastructure: A 138kV Commonwealth Edison (ComEd) transmission line is located 1.5 miles away. For a ≤5MW project, interconnecting at transmission voltage is financially infeasible due to the high cost of a dedicated substation and long gen-tie line. Therefore, this transmission line should be considered irrelevant for our target project size.

Interconnection Recommendation & Costs: The project must target a 12.47kV or 34.5kV distribution feeder. Interconnection costs are highly variable. A simple tap to an adjacent overhead line might cost $300k - $750k. If a new dedicated feeder must be pulled from a substation 0.5-1 mile away, costs could easily exceed $1.5M - $3M, plus the cost of any necessary substation upgrades. Requires Verification: A formal interconnection pre-application with ComEd is the only way to get a reliable cost and capacity estimate.

Utility Process: The interconnecting utility is ComEd, and the RTO is PJM. The ComEd distribution interconnection process is governed by the Illinois Commerce Commission. Queue times can be lengthy, often 18-24 months from application to commercial operation, and are subject to delays from study backlogs and equipment procurement.

4. Regulatory & Zoning Analysis

Authority Having Jurisdiction (AHJ): The City of Park Ridge is the primary AHJ for zoning and permitting. Cook County may have limited oversight (e.g., environmental health).

Zoning Compatibility: The parcel is zoned "O" (Office District). Battery energy storage is a new use and is not listed as a permitted or special use in most municipal office zoning codes. This zoning is a significant hurdle.

Permitting Pathway: A "by-right" approval is highly unlikely. The project will almost certainly require a discretionary permit, such as a Conditional Use Permit (CUP) or Special Exception. This process involves public hearings, planning commission review, and final approval by the city council. It