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

This report provides a comprehensive due diligence analysis for the subject property in Park Ridge, Cook County, Illinois, for its potential as a distribution-scale (≤5MW) Battery Energy Storage System (BESS) project. The analysis identifies significant potential upsides, primarily through IRA incentives, but also flags critical risks related to grid interconnection and regulatory approval that must be addressed immediately.

1. Site Access & Topography

Road Access & Equipment Delivery: The property is located within a developed commercial office park with public road access. Based on aerial imagery, Renaissance Drive is a paved, multi-lane road capable of handling heavy truck traffic. Proximity to major transportation corridors, including Interstate 294 (Tri-State Tollway) less than a mile away, is a significant logistical advantage. This suggests that delivery of heavy equipment, including multi-ton battery containers, transformers, and switchgear, is highly feasible from a road access perspective.

Terrain & Site Maneuverability: As is typical for the Chicago metropolitan area, the site's topography appears to be flat to gently sloped, which is ideal for BESS construction. This minimizes the need for extensive civil work and grading, reducing site preparation costs. The existing office park layout likely includes large parking areas and service roads that could facilitate crane and heavy equipment movement on-site during construction.

Easement Concerns: While primary access is public, the specific parcel is part of a larger development. A full title report is required to identify any potential access, utility, or restrictive covenant easements that could encumber the buildable area or dictate specific access routes. Internal access rights across the parent parcel require verification.

2. Environmental Constraints

Flood & Wetlands: The FEMA Flood Zone and Wetlands status are currently listed as "Unknown." This represents a critical data gap and a potential fatal flaw. A high-priority next step is to conduct a desktop screening using FEMA FIRM and National Wetlands Inventory (NWI) maps. Any presence of a Special Flood Hazard Area (e.g., Zone A, AE) would necessitate elevating all equipment above the Base Flood Elevation, adding significant cost. The presence of jurisdictional wetlands would trigger setback requirements (typically 50-100 feet) and could severely constrain the buildable envelope.

Habitat & Protected Areas: The site shows no critical habitat or protected areas, which is a positive finding. Given its location in a developed commercial zone, the risk of encountering endangered species is considered low but should be confirmed via a desktop review (e.g., USFWS IPaC tool).

Brownfield/Superfund Status: The data indicates one Superfund/Brownfield site within a 2-mile radius. While the subject parcel itself is not listed, this proximity presents both a risk and a significant opportunity. The risk involves potential soil or groundwater contamination migrating from the nearby site, which must be assessed via a Phase I Environmental Site Assessment (ESA). The opportunity is the potential to qualify for the 10% IRA Brownfield tax credit adder. Qualification would require the site to meet the federal definition of a brownfield, which a Phase I ESA could help determine. This is a high-impact item requiring immediate investigation.

Other Constraints: The site is not within the Chesapeake Bay Critical Area. No pipelines or gas wells are located in the immediate vicinity, which de-risks the project from a safety and setback perspective.

3. Grid Infrastructure & Interconnection

Substation & Point of Interconnection (POI): The nearest substation data is missing, which is the most significant project risk. A desktop search identifies the ComEd Park Ridge Substation approximately 1.5-2.0 miles east of the site. A 138kV transmission line is also 1.5 miles away. For a ≤5MW project, a transmission-level interconnection is financially unviable. The only feasible POI would be a 3-phase distribution feeder (likely 12.47kV or 34.5kV) from the nearby substation.

Interconnection Cost & Timeline: An interconnection route of 1.5-2.0 miles to the nearest likely substation is substantial. The cost for extending a distribution feeder this distance, likely via underground boring through a developed suburban area, could easily range from $750,000 to over $2,000,000. This could render the project uneconomical. The interconnecting utility is Commonwealth Edison (ComEd), which operates within the PJM RTO. PJM's interconnection queue is notoriously long and complex; a realistic timeline from application submission to Commercial Operation could be 24-48 months.

Feeder Configuration: The presence, capacity, and voltage of a suitable 3-phase distribution feeder along Renaissance Drive or Higgins Road requires immediate verification via a ComEd pre-application report. Without a nearby, viable feeder with available capacity, this site is a non-starter.

4. Regulatory & Zoning Analysis

Jurisdiction & Zoning: The Authority Having Jurisdiction (AHJ) is the City of Park Ridge. The property is zoned "O - Office District." A review of the Park Ridge municipal code is necessary to determine the viability of a BESS. It is highly unlikely that BESS is a "by-right" (permitted) use in an Office district. The most probable permitting pathway would be a Special Use Permit (SUP) or a Conditional Use Permit (CUP). This process typically involves public hearings, planning commission review, and city council approval, introducing significant timeline risk and uncertainty.

Permitting Risks: Siting industrial-style equipment in a commercial office park will likely face scrutiny from the AHJ and neighboring property owners regarding aesthetics, noise (from HVAC systems), and safety. Setback requirements from property lines and adjacent structures will need to be confirmed but can be expected to be stringent. A pre-application meeting with Park Ridge's Planning & Zoning department is essential to gauge their receptiveness and understand the specific requirements and potential for community opposition. We must also verify there are no local moratoriums on BESS development.

5. IRA/ITC Incentive Analysis

This site shows strong potential for enhanced Investment Tax Credits (ITC) under the Inflation Reduction Act (IRA).