⚡ 1480 RENAISSANCE DR

MEMORANDUM

TO: Sunland America Corp. Investment 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 property located at 1480 Renaissance Drive in Park Ridge, Cook County, Illinois. The analysis evaluates the site's suitability for a distribution-scale (≤5MW) Battery Energy Storage System (BESS) project based on key development criteria.

1. Site Access & Topography

The subject property is located in a well-developed commercial office park, immediately east of the I-294 Tollway and south of O'Hare International Airport. This location offers both advantages and challenges.

• Road Access & Equipment Delivery: Access is provided via Renaissance Drive, a multi-lane, paved public road designed to handle commercial traffic. Road quality appears excellent and is more than sufficient for the delivery of heavy equipment, including mobile cranes, transformers, and containerized BESS units. The proximity to major highways (I-294, I-90) is a logistical advantage for construction.
• Terrain Characteristics: The Chicagoland area is notoriously flat. The site itself is expected to be level and graded, consistent with its current use as part of a commercial development. This will significantly reduce civil engineering and site preparation costs, as extensive grading will likely not be required.
• Heavy Equipment Feasibility: The existing road network and likely flat terrain present no obvious barriers to accessing the site with all necessary construction and delivery equipment. The primary challenge will be maneuvering on the parcel itself, the buildable area of which needs confirmation.
• Easement Concerns: While the primary road access is public, an access easement may be required to cross adjacent property within the office park to reach the specific BESS footprint. A title report and ALTA survey are required to verify ingress/egress rights and identify any existing utility easements that could conflict with development. There is a notable discrepancy in listed acreage (35.02 vs. 2.97 acres) which must be resolved via a survey to understand the true developable area.

2. Environmental Constraints

The site's environmental profile contains significant unknowns that represent a primary diligence focus. The urbanized setting reduces some risks while potentially introducing others.

• FEMA Flood Zone: The FEMA flood zone designation is currently Unknown. This is a critical data gap. The nearby Des Plaines River creates flood risk in the region. Any designation within a 100-year floodplain (Zone A/AE) would likely render the site undevelopable or require cost-prohibitive mitigation, such as elevating all equipment above the Base Flood Elevation (BFE). Immediate desktop analysis using FEMA's Map Service Center is required.
• Wetlands: The presence of wetlands is Unknown. A National Wetlands Inventory (NWI) screening is a necessary first step. While the site appears developed, remnant jurisdictional wetlands or "waters of the U.S." could be present. Discovery of wetlands would trigger significant state (Illinois EPA) and federal (USACE) setbacks and permitting requirements, potentially shrinking the buildable area.
• Critical Habitat / Endangered Species: The data indicates no critical habitat or protected areas on or near the site. Given the highly developed urban context, this is considered a very low risk.
• Brownfield/Superfund Status: The presence of a Superfund site within two miles is noted. This requires careful investigation. A Phase I Environmental Site Assessment (ESA) is mandatory to determine if the subject parcel has a history of contamination that would qualify it as a "brownfield" under IRA guidelines. If it qualifies, this is a significant advantage, unlocking a 10% ITC adder. If it does not qualify, the proximity of the other site could still introduce risks of migrating contaminants, which would be identified in the Phase I ESA.
• Pipeline Proximity: No gas pipelines are identified within a three-mile radius. This is a significant safety and layout advantage, eliminating concerns related to pipeline setbacks and explosion risk.

3. Grid Infrastructure & Interconnection

Grid access is the most critical and uncertain aspect of this site's viability. The lack of substation data is a major impediment to a confident evaluation.

• Nearest Substation: Data on the nearest substation (distance, voltage, capacity) is Unknown. This is the single largest risk factor. A distribution-scale project requires a nearby distribution substation with available capacity. Without this, the project is not feasible. The interconnecting utility is presumed to be Commonwealth Edison (ComEd). A formal interconnection pre-application is the only way to get reliable data on the local distribution feeder.
• Transmission Infrastructure: A 138kV ComEd transmission line is located 1.5 miles from the site. For a ≤5MW project, this is not a viable Point of Interconnection (POI). The cost to build 1.5 miles of new transmission line and a dedicated substation would be in the tens of millions of dollars, making the project economically impossible.
• Recommended Interconnection: The only feasible path is an interconnection to a local ComEd distribution feeder, likely at 12.47kV or 34.5kV. The project's viability is entirely dependent on the proximity, voltage, and available hosting capacity of such a feeder.
• Cost & Timeline Estimate: Requires Verification. Assuming a suitable feeder is adjacent to the site with adequate capacity, interconnection costs could be in the $500k - $1.5M range. However, if the feeder requires significant upgrades (e.g., reconductoring, substation breaker upgrades), costs could easily exceed $2M - $4M. The PJM interconnection queue, which ComEd operates within, has experienced significant backlogs. Even for a distribution-level project, the timeline from application to commercial operation can be 24-36+ months.
• Feeder Configuration: It is likely that a 3-phase distribution line, either overhead or underground, runs along Renaissance Drive to serve the surrounding office buildings. A site visit and review of ComEd distribution maps are needed to confirm.

4. Regulatory & Zoning Analysis

The regulatory pathway presents a significant hurdle. The current zoning is