⚡ 1480 RENAISSANCE DR

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)

FINAL RECOMMENDATION: MAYBE

This report provides a comprehensive due diligence analysis for the potential acquisition and development of a battery energy storage system (BESS) at the subject property. The site possesses a critical financial advantage through its qualification as an Energy Community, but this is counterbalanced by significant unknowns and potential risks related to grid interconnection, environmental constraints, and local permitting. Aggressive and immediate follow-up diligence is required to de-risk the project before further capital is committed.

1. Site Access & Topography

Road Access & Equipment Delivery: The site benefits from public road access on Renaissance Drive, located within a developed commercial office park. Roads in this area are expected to be paved, well-maintained, and designed to accommodate commercial traffic, including semi-trailers. This is a significant advantage for the delivery of heavy and oversized BESS equipment, such as battery containers, pad-mount transformers, and switchgear. A preliminary desktop review shows no obvious obstructions like low-clearance bridges or sharp, unnavigable turns leading to the site. However, a formal route survey should be conducted prior to any equipment orders.

Terrain & Buildability: The property is located in Cook County, Illinois, an area characterized by exceptionally flat topography. This is highly favorable for BESS development, as it will likely minimize the need for extensive civil work and grading, thereby reducing site preparation costs and timelines. The primary buildability concern is a significant discrepancy in the provided data: the county record lists 35.02 acres, while the Regrid data for the specific APN shows only 2.97 acres. This must be clarified immediately via a title report and ALTA survey, as 2.97 acres is sufficient for a ≤5MW project, but provides less layout flexibility.

Easement Concerns: With direct frontage on a public road, a dedicated access easement is likely not required. However, internal easements for utilities (existing or proposed) or shared access agreements with neighboring parcels within the office park could exist. A title commitment is required to identify any recorded easements that could encumber the buildable area or restrict equipment placement.

2. Environmental Constraints

Flood & Wetlands: The FEMA flood zone and wetlands status are both listed as "Unknown." These represent critical, potentially fatal-flaw risks. An immediate desktop review using FEMA's Map Service Center and the U.S. Fish and Wildlife Service's National Wetlands Inventory (NWI) is the first priority. If the site is within a Special Flood Hazard Area (e.g., Zone A or AE), all equipment pads would need to be elevated above the Base Flood Elevation, adding significant cost. The presence of jurisdictional wetlands would trigger state (IEPA) and federal (USACE) permitting processes and require setbacks (typically 50-100 feet), which could severely constrain the buildable envelope on a smaller parcel.

Contamination & Brownfield Status: The property is not a designated brownfield, meaning it does not qualify for the 10% IRA brownfield tax credit adder. The presence of a superfund site within two miles warrants caution. A Phase I Environmental Site Assessment (ESA) is mandatory to investigate the historical use of the property and surrounding area, and to assess the risk of potential soil or groundwater contamination from off-site sources. This is a standard diligence item but is elevated in importance given the nearby listed site.

Habitat & Other Constraints: The data indicates no designated critical habitats or protected areas on or near the parcel, which is a positive finding that simplifies permitting. Proximity to pipelines is not a concern. As the site is in Illinois, the Chesapeake Bay Critical Area regulations do not apply.

3. Grid Infrastructure & Interconnection

Point of Interconnection (POI): This is the single greatest unknown for the project. The data on the nearest substation and distribution feeder is missing. The 138kV transmission line located 1.5 miles away is not a viable interconnection point for a distribution-scale (≤5MW) project due to the prohibitive cost of a transmission-level tap and substation.

Recommended Interconnection Strategy: The only feasible path is a distribution-level interconnection with the local utility, Commonwealth Edison (ComEd). The target would be a 3-phase feeder, likely operating at 12.47kV or 34.5kV, which is common in commercial areas. Identifying the location, voltage, and available capacity of the nearest feeder is the most urgent technical task. This will likely involve commissioning a formal interconnection feasibility study or submitting a pre-application report request to ComEd.

Estimated Costs & Timeline: Without a known POI, costs are highly speculative. A best-case scenario (feeder adjacent to the site with adequate capacity) might involve costs of $500,000 - $1,000,000 for switchgear, protection, and utility fees. A worst-case scenario (requiring a new feeder extension, re-conductoring, or substation upgrades) could easily exceed $2,500,000. The ComEd interconnection queue, governed by the Illinois Commerce Commission, can be lengthy. Timelines from application submission to receiving an Interconnection Agreement can range from 12 to 24 months, representing a significant portion of the project development cycle.

4. Regulatory & Zoning Analysis

Jurisdiction & Zoning: The Authority Having Jurisdiction (AHJ) is the City of Park Ridge. The property is zoned "O - Office," which is a commercial designation. BESS is a quasi-industrial use and is almost never permitted "by-right" in an office zone.

Permitting Pathway: The most likely permitting pathway is a Conditional Use Permit (CUP) or Special Use Permit (SUP). This is a discretionary process that requires public hearings before the Planning Commission and/or City Council. This introduces significant political risk and timeline uncertainty. The success of a CUP application will depend on our ability to demonstrate that the BESS facility is compatible with the surrounding office park and to mitigate concerns related to safety (fire), noise, and aesthetics.

Regulatory Risks: We must proactively engage with Park Ridge's planning staff to understand their appetite for a BESS project and to identify specific submittal requirements. It is critical to determine if there are any local moratoriums on BESS development, which are becoming increasingly common in suburban municipalities. The project will need to comply with all local building codes as well as NFPA 855, the national standard for the installation of energy storage systems.

5. IRA/ITC Incentive Analysis

Investment Tax Credit (ITC) Adders: This is the site's most compelling attribute.

• Energy Community: Yes. The site qualifies as an Energy Community due to being in a Fossil Fuel Employment (FFE) area. This provides a crucial