⚡ 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 APN 09221100050000 (1480 Renaissance Dr, Park Ridge, IL)

This report provides a comprehensive due diligence analysis for the property located at 1480 Renaissance Dr, Park Ridge, IL, for its potential as a distribution-scale (≤5MW) Battery Energy Storage System (BESS) project. The analysis covers key development pillars including site characteristics, environmental constraints, grid infrastructure, regulatory hurdles, and financial incentives.

1. Site Access & Topography

Road Access & Equipment Delivery: The site benefits from public road access on Renaissance Drive, situated within a developed commercial/office park environment. Based on aerial imagery, the road appears to be a paved, multi-lane boulevard capable of supporting standard construction traffic. However, the critical consideration is its ability to handle oversized and overweight loads associated with BESS projects, such as lowboy trailers carrying main power transformers (often exceeding 80,000 lbs) and 40-50 ft. BESS containers. A formal route survey will be required to confirm bridge weight limits, turning radii, and overhead line clearances from the nearest interstate (I-294) to the site.

Terrain & Buildability: The property is in Cook County, an area known for its generally flat topography. It is highly likely that the site is level and will require minimal grading, which is a significant cost advantage. The primary buildability concern is a major discrepancy in the provided data: one source lists the parcel as 35.02 acres, while another (Regrid) lists it as 2.97 acres. The 2.97-acre figure is more consistent with the APN's appearance in an office park. This must be clarified immediately, as it dictates the potential project size and layout. Assuming the 2.97-acre size, this is adequate for a 5MW / 20MWh project, which typically requires 1-1.5 acres.

Easement Concerns: No access or utility easements are noted in the preliminary data. However, in a developed commercial area, it is almost certain that underground utility easements (water, sewer, gas, telecom) exist. A full ALTA survey and title report are mandatory to identify any easements that could sterilize portions of the property and constrain the BESS equipment layout.

2. Environmental Constraints

Flood & Wetlands: The FEMA flood zone and wetlands status are both listed as "Unknown." These are critical, potentially fatal-flaw data gaps. If the site is located within a 100-year floodplain (e.g., Zone AE), development costs will increase substantially due to requirements for elevating all equipment pads and control houses above the Base Flood Elevation (BFE). If delineated wetlands are present, state and federal setback requirements (typically 50-100 feet) could render the site unusable. A desktop screening using FEMA and National Wetlands Inventory (NWI) maps is an immediate next step.

Contamination & Brownfield Status: The presence of a superfund site within two miles warrants a mandatory Phase I Environmental Site Assessment (ESA) to ensure no recognized environmental conditions (RECs) affect the subject property. While this presents a risk, it also presents an opportunity. If the Phase I ESA determines the site itself could be classified as a brownfield (due to historical use, for example), the project could qualify for the 10% IRA brownfield ITC adder, turning a liability into a significant financial advantage.

Habitat & Other Constraints: The site shows no critical habitat, protected areas, or nearby pipelines, which are significant positive findings that de-risk the project from these specific environmental perspectives. The Chesapeake Bay Critical Area is not applicable.

3. Grid Infrastructure & Interconnection

Interconnection Point of Interest (POI): This is the most significant weakness of the site. The data for the nearest substation and distribution feeder is completely missing. A BESS project is not viable without a cost-effective interconnection. The nearest identified infrastructure is a 138kV transmission line 1.5 miles away. Tapping a 138kV line is prohibitively expensive (likely $5M+) for a small 5MW project and is not a feasible path forward.

Likely Interconnection & Costs: The only viable path for a distribution-scale project is to interconnect with a local Commonwealth Edison (ComEd) 3-phase distribution feeder, likely operating at 12.47kV or 34.5kV. We must assume such a feeder runs along Renaissance Drive, but this requires immediate verification. If a suitable feeder with available capacity is adjacent to the site, interconnection costs could be in the $750,000 to $2,000,000 range. If the feeder requires significant upgrades or a new circuit from the substation, costs could easily exceed $3,000,000.

Utility Process: ComEd manages the PJM interconnection queue for this region. The queue is known to be congested, and the study process timeline from application to receiving an Interconnection Service Agreement (ISA) can realistically take 24-36 months. A formal interconnection application is a high-cost, high-risk step. A pre-application report from the utility is the essential first step to determine feasibility.

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 novel land use that is not explicitly permitted in a standard Office zone. It is not an office, retail, or light industrial use.

Permitting Pathway & Risk: This zoning presents a major entitlement risk. The project will not be approved "by-right." The most likely permitting pathway is a Special Use Permit (SUP) or a Conditional Use Permit (CUP), which requires public hearings and discretionary approval from the city's planning commission and/or city council. This process can be lengthy (9-18 months), costly, and is subject to political and public opposition (NIMBYism). An outright rezoning is a less likely but possible requirement, which carries even greater risk.

Regulations & Setbacks: It is unlikely that Park Ridge has a specific ordinance for Battery Energy Storage Systems. Therefore, setbacks, noise limits (for HVAC systems), and safety requirements (e.g., NFPA 855 compliance) will be negotiated and conditioned as part of the SUP process. This lack of clear regulation creates uncertainty for developers.

5. IRA/ITC Incentive Analysis

This is a key strength of the site. The project's eligibility for Investment Tax Credit (ITC) adders is strong.

• Base ITC: 30%
• Opportunity Zone: No (0% adder)
• Energy Community: Yes, qualifies as a Fossil Fuel Employment (FFE) area. This provides a crucial 10% adder.
• Low-Income Community: No (0% adder)

The cumulative ITC for this project is 40% (30% base + 10% Energy Community). Furthermore, if the project can meet domestic content requirements for steel, iron, and manufactured products, an additional 10% adder is possible, bringing the total potential ITC to 50%. This high incentive level can offset some of the site's other significant risks.

6. BESS Score & Rationale

Overall BESS Suitability Score: 42/100

• Location (10/20): Situated in a developed area with good road