⚡ 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 1480 Renaissance Dr, Park Ridge, 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 key site attributes, significant risks, and actionable next steps to determine project viability.

1. Site Access & Topography

Road Access & Feasibility: The site benefits from excellent public road access, situated within a well-developed commercial office park. The primary access is via Renaissance Drive and South Dee Road, which connect to major arterial roads and are in close proximity to Interstate 294. These roads are paved, well-maintained, and appear capable of handling heavy commercial traffic.

Terrain Characteristics: As is typical for the Chicagoland area, the topography is expected to be exceptionally flat with minimal grade. This is highly advantageous, as it will significantly reduce civil engineering and site preparation costs. No major earthwork is anticipated.

Heavy Equipment Access: The existing road network is designed for commercial use and should readily accommodate the delivery of heavy equipment, including semi-trucks carrying BESS containers, switchgear, and pad-mount transformers. A detailed route survey is still recommended to verify turning radii and identify any potential vertical clearance issues (e.g., overpasses, power lines) on the final approach.

Easement Concerns: Given the developed nature of the property, it is highly probable that multiple existing utility easements (power, water, sewer, communications) cross the parcel. A title report and an ALTA/NSPS Land Title Survey are critical early-stage requirements to identify these encumbrances. The location of these easements will directly impact the final site layout and buildable area. There is also a notable discrepancy in the listed acreage (35.02 vs. 2.97 acres); the 2.97-acre figure from Regrid is more plausible for this APN and must be confirmed immediately.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is currently Unknown. This is a critical data gap. Any designation other than Zone X (minimal flood risk) would introduce significant design challenges and costs, potentially requiring all equipment to be elevated above the Base Flood Elevation (BFE). This must be investigated via FEMA's Map Service Center as a first step.

Wetlands: The presence of wetlands is also Unknown. A desktop screening using the National Wetlands Inventory (NWI) is required. If potential wetlands are identified, a formal wetland delineation would be necessary, which could trigger substantial setbacks (e.g., 50-100 feet) and reduce the buildable area, potentially rendering the site unviable.

Critical Habitat / Endangered Species: The initial screening indicates no critical habitat or protected areas on or immediately adjacent to the site. This is a positive finding that reduces the risk of lengthy and complex consultations with the U.S. Fish and Wildlife Service (USFWS).

Brownfield/Superfund Status: The property is located within 2 miles of a known contamination site. This presents both a risk and an opportunity. The risk is potential contaminant migration onto our parcel, which must be assessed via a Phase I Environmental Site Assessment (ESA). The opportunity is that if the subject property *itself* qualifies as a brownfield under IRA guidelines, the project would be eligible for a 10% ITC adder. The Phase I ESA is essential to clarify this status.

Pipeline Proximity: No major gas transmission pipelines are identified within a 3-mile radius. This is a significant safety and permitting advantage, eliminating risks associated with pipeline-related setbacks and hazard analyses.

3. Grid Infrastructure & Interconnection

Substation & Feeder: This is the most significant unknown for the project. Data on the nearest distribution substation (distance, voltage, capacity) is missing. For a ≤5MW BESS, interconnection will almost certainly be to a local distribution feeder. The site's location in a commercial park suggests a 3-phase feeder is present, likely operating at a standard Commonwealth Edison (ComEd) voltage like 12.47kV or 34.5kV. Identifying the specific feeder, its available hosting capacity, and its proximity to the parcel is the highest priority diligence item.

Transmission Infrastructure: A 138kV ComEd transmission line is located 1.5 miles from the site. This is too distant and at too high a voltage to be economically viable for a distribution-scale project. It should be considered irrelevant for our purposes.

Interconnection Recommendation & Costs: The recommended point of interconnection (POI) is the nearest suitable 3-phase distribution line. Interconnection costs are highly uncertain without feeder data. A best-case scenario (adjacent feeder with ample capacity) might be in the $500k - $1M range. A worst-case scenario (requiring a new feeder run from a distant substation or significant upgrades) could easily exceed $2M - $3M, making the project uneconomic.

Utility Process: The interconnecting utility is Commonwealth Edison (ComEd), which operates within the PJM RTO. The ComEd interconnection process can be lengthy and complex. Submitting a formal interconnection pre-application is the only reliable way to get concrete data on feasibility, timeline, and cost estimates. PJM's queue has experienced significant backlogs, which could impact the project schedule.

4. Regulatory & Zoning Analysis