⚡ 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 O'Hare" - 1480 Renaissance Dr, Park Ridge, IL (APN: 09221100050000)

This report provides a comprehensive due diligence analysis for the subject property in Park Ridge, IL for its potential as a distribution-scale (≤5MW) Battery Energy Storage System (BESS) site. The analysis balances significant financial incentives against considerable interconnection and regulatory uncertainties.

1. Site Access & Topography

Road Access & Feasibility: The property is located at 1480 Renaissance Drive, which appears to be within a modern commercial office park. Access is listed as public, and satellite imagery confirms it is a well-maintained, paved road. This type of infrastructure is highly advantageous for construction, as it is designed to handle delivery trucks and commercial traffic.

Terrain Characteristics: The site is in Cook County, Illinois, an area known for its extremely flat topography. We can confidently assume the parcel is level, which will minimize civil engineering costs associated with grading and site preparation. This is a significant advantage, reducing both project cost and timeline.

Heavy Equipment Access: The existing road network within the office park should be sufficient to accommodate heavy equipment, including cranes for setting transformers and delivery of containerized BESS units. A detailed route survey will be required to confirm turning radii, bridge weight limits, and the absence of low-hanging overhead utility lines. However, initial assessment suggests a low risk for major access impediments.

Easement Concerns: While road access is public, a full title report is required to identify any potential access easements, utility easements, or restrictive covenants on the parcel itself that could limit the placement of BESS equipment or conflict with our intended use. The discrepancy in listed acreage (35.02 vs. 2.97 acres) must be resolved via a title search and survey to confirm the exact legal boundaries and any associated encumbrances.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is currently Unknown. This is a critical data gap. A location within a Special Flood Hazard Area (e.g., Zone A, AE) would necessitate elevating all equipment above the Base Flood Elevation, adding substantial cost and complexity. This must be investigated immediately via FEMA's Map Service Center.

Wetlands: The presence of wetlands is also Unknown. A desktop screening using the National Wetlands Inventory (NWI) is the first step. If potential wetlands are identified, a formal wetland delineation would be required, which could trigger significant state (Illinois Department of Natural Resources) and federal (USACE) setbacks, potentially rendering the site undevelopable. Given the developed office park setting, the risk is likely moderate but cannot be dismissed.

Critical Habitat / Species Risk: The data indicates no critical habitat or protected areas on or near the site. This is a positive finding, significantly reducing the risk of project delays or costly mitigation measures related to the Endangered Species Act.

Brownfield/Superfund Status: There is one identified contaminated site within a 2-mile radius, but the subject parcel itself is not listed as a brownfield. This is a dual-edged sword. It means we likely avoid legacy contamination liability. However, it also means the site does not qualify for the 10% IRA Brownfield ITC adder. A Phase I Environmental Site Assessment (ESA) is required to confirm the absence of on-site contamination from prior land use.

Pipeline Proximity: The absence of major gas pipelines within a 3-mile radius is a significant safety and permitting advantage, eliminating the need for specialized setback studies and consultations with pipeline operators.

3. Grid Infrastructure & Interconnection

Nearest Substation & Feeder: This is the most critical unknown for the project. Data on the nearest Commonwealth Edison (ComEd) substation (distance, voltage, capacity) is missing. Identifying the local distribution substation and the specific feeder serving the area is the highest priority. The feasibility and cost of the project are entirely dependent on this information. Without a viable Point of Interconnection (POI), the site is not viable.

Transmission Proximity: A 138kV transmission line is located 1.5 miles away. For a ≤5MW project, this is not a viable POI. The cost to interconnect at transmission voltage would be prohibitive (>$5-10M) and is unnecessary for this project scale. Our focus must be exclusively on a local distribution-level (e.g., 12.47kV or 34.5kV) interconnection.

Interconnection Cost & Timeline: Assuming a viable distribution feeder is located on-site or directly adjacent (within 500 feet), interconnection costs could range from $500,000 to $1,500,000 for line upgrades, reclosers, and communications equipment. If a new feeder bay is required at the substation, costs could easily exceed $2,000,000. The ComEd interconnection process runs through the PJM Interconnection queue. Timelines from application to Commercial Operation can be lengthy, typically ranging from 24 to 48 months.

Utility & Feeder Configuration: The utility is ComEd, a major, experienced investor-owned utility. The feeder is likely a 3-phase circuit, potentially underground given the office park setting, which could increase tapping costs compared to an overhead line. A formal pre-application report request to ComEd is essential to obtain hosting capacity data and a conceptual POI.

4. Regulatory & Zoning Analysis

Authority Having Jurisdiction (AHJ): The City of Park Ridge is the AHJ for zoning and permitting.

Zoning Compatibility: The parcel is zoned 'O' - Office District. Battery energy storage is not a