⚡ 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 "Project O'Hare" (1480 RENAISSANCE DR, Park Ridge, IL)

This report provides a comprehensive due diligence analysis for the property located at 1480 Renaissance Drive, Park Ridge, IL (APN: 09221100050000) for its potential as a distribution-scale (≤5MW) Battery Energy Storage System (BESS) project. The analysis identifies significant opportunities, primarily related to IRA incentives, but also flags critical risks concerning grid interconnection and regulatory approval that must be addressed.

1. Site Access & Topography

The subject property benefits from excellent logistical access. It is located in a well-developed commercial office park immediately adjacent to Interstate 294 and minutes from O'Hare International Airport. Access is provided via Renaissance Drive, a public road built to commercial standards, which connects to major arterial roads like East Higgins Road. This existing infrastructure appears fully capable of supporting the delivery of heavy equipment, including tractor-trailers carrying battery containers, medium-voltage transformers, and switchgear. The topography in this region of Illinois is characteristically flat, which will significantly simplify civil engineering, grading, and foundation work, thereby reducing construction costs and timelines. A key uncertainty is the significant discrepancy in listed acreage (35.02 vs. 2.97 acres). Assuming the smaller 2.97-acre figure is correct for the specific parcel, a review of the plat map is critical to identify any access or utility easements that may encumber the property and restrict the buildable area. Given its location within an established office park, shared access agreements or restrictions are highly likely.

2. Environmental Constraints

Environmental diligence reveals a mixed profile with several critical data gaps. The FEMA flood zone and wetlands status are currently Unknown. These are immediate, high-priority investigation items. Any designation within a 100-year floodplain (Zone AE) or the presence of jurisdictional wetlands would impose significant design constraints, require costly mitigation (e.g., raised equipment pads), or potentially render the site undevelopable. On a positive note, the site has no identified critical habitats, protected areas, or nearby pipelines, which de-risks the project from a safety and ecological perspective. The presence of a Brownfield/Superfund site within two miles is a point of concern that necessitates a Phase I Environmental Site Assessment (ESA) to rule out any contamination on the subject parcel. However, this could also represent an opportunity: if the subject parcel itself can be classified as a Brownfield, it would qualify for an additional 10% ITC adder under the Inflation Reduction Act (IRA), turning a potential liability into a significant financial advantage.

3. Grid Infrastructure & Interconnection

This is the area of greatest risk and uncertainty. The provided data lacks information on the nearest distribution substation, which is the most critical piece of infrastructure for a distribution-scale project. While a 138kV transmission line owned by Commonwealth Edison (ComEd) is located 1.5 miles away, interconnecting a ≤5MW BESS at transmission voltage would be economically unviable due to the high costs of a dedicated substation and extensive line work (likely >$5M). The project's viability hinges on the proximity and available capacity of a local ComEd distribution feeder, likely operating at 12.47kV or 34.5kV. A desktop analysis using satellite imagery suggests a potential ComEd substation approximately 1-1.5 miles east of the site, but this requires immediate verification. The interconnection process will be managed through the PJM RTO queue, which is known for long timelines, often 24-36 months from application to commercial operation. The immediate next step must be to commission a formal grid feasibility study to identify the Point of Interconnection (POI), estimate network upgrade costs, and assess feeder capacity.

4. Regulatory & Zoning Analysis

The Authority Having Jurisdiction (AHJ) is the City of Park Ridge. The parcel is currently zoned "O" (Office District), which is a challenging designation for a BESS project. Energy storage is not a listed by-right use in this zone, meaning the project will require a discretionary permit. The most likely permitting pathway is a Special Use Permit (SUP), which involves public hearings and approval from the city council. This process introduces significant entitlement risk and potential for local opposition. An alternative, more difficult path could be a full rezoning. Early, proactive engagement with the Park Ridge Planning & Zoning department is essential to introduce the project concept, understand their requirements, and gauge their receptiveness. We must research the municipal code for any specific ordinances related to "public utilities" or "electrical substations" that could provide a permitting foothold. The lack of established BESS regulations in the jurisdiction could also lead to project delays or even a development moratorium if not managed carefully.

5. IRA/ITC Incentive Analysis

The project's financial viability is significantly enhanced by its eligibility for IRA tax credits. The site is confirmed to be in an