⚡ 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 Renaissance"

Property: 1480 RENAISSANCE DR, Park Ridge, Cook County, IL (APN: 09221100050000)

This report provides a comprehensive due diligence analysis for the potential development of a distribution-scale (≤5MW) Battery Energy Storage System (BESS) at the subject property. The analysis identifies several critical data gaps and significant regulatory hurdles, balanced against a valuable federal tax incentive. The site currently presents a high-risk profile requiring substantial de-risking before further capital is committed.

1. Site Access & Topography

Road Access & Feasibility: The property benefits from excellent road access. It is located in a developed commercial office park with direct frontage on Renaissance Drive, a paved public road. Proximity to major highways (I-294) suggests that regional access for equipment delivery is straightforward. The existing road network appears well-maintained and capable of supporting heavy truck traffic.

Terrain Characteristics: As is typical for the Chicagoland area, the site is presumed to be flat with minimal topographic relief. This is highly advantageous, as it will likely minimize the need for extensive civil work and grading, thereby reducing site preparation costs. Requires verification with a formal topographic survey.

Heavy Equipment Access: Access for critical heavy equipment, including battery containers, power conversion systems (PCS), and the main power transformer, appears feasible via the existing public road network. A formal route survey will be required to confirm clearances for any underpasses or tight intersections between the highway and the site, but initial desktop review indicates a low risk of major impediments.

Easement Concerns: The parcel, listed at 2.97 acres (Regrid) versus a larger 35.02 acres in another data source, is situated within a larger office park development. This raises a high probability of existing easements for shared access, utilities (power, water, sewer, communications), and drainage that could encumber the property and constrain the buildable area. A title report and ALTA survey are essential to identify and map all such encumbrances.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is currently Unknown. This represents a critical and potentially fatal flaw. If the site is located within a 100-year floodplain (Zone A or AE), development costs would increase substantially due to the need to elevate all equipment above the Base Flood Elevation (BFE), or the site may be rendered undevelopable. Immediate verification using the FEMA Map Service Center is required.

Wetlands: The presence of jurisdictional wetlands is Unknown. This is another significant risk. The presence of wetlands could drastically reduce the buildable acreage due to required setbacks (typically 50-100 feet, jurisdiction-dependent). A desktop screening using the National Wetlands Inventory (NWI) is a necessary first step, likely followed by a formal wetlands delineation if any indicators are present.

Critical Habitat / Species: The data indicates no critical habitats or protected areas on or immediately adjacent to the site, which is expected for a developed commercial area. This is considered a low-risk item, though it will be formally confirmed during a Phase I Environmental Site Assessment (ESA).

Brownfield/Superfund Status: The property itself is not listed as a brownfield, but a known site exists within two miles. This presents both a potential risk and a significant opportunity. The risk is potential contaminant migration onto the subject parcel, which must be assessed in a Phase I ESA. The opportunity is the 10% ITC adder for projects sited on a qualified brownfield. Further investigation is needed to determine if this specific parcel could meet the IRA's definition of a brownfield site, which could provide a major financial boost to the project.

Pipeline Proximity: No major gas transmission pipelines are identified within a 3-mile radius, mitigating risks associated with pipeline-related setbacks and safety protocols