⚡ 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 "Project Renaissance"

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

FINAL RECOMMENDATION: MAYBE

This report provides a comprehensive due diligence analysis for the potential acquisition and development of a distribution-scale Battery Energy Storage System (BESS) at the subject property. The site presents a mix of compelling attributes, including a valuable IRA incentive and excellent physical access, but is burdened by critical unknowns and significant risks, primarily concerning grid interconnection and regulatory approval. The following analysis details these factors and concludes with a qualified recommendation to proceed with limited, targeted due diligence to resolve fatal-flaw risks before committing further capital.

1. Site Access & Topography

Overall Assessment: Excellent. The site's physical access and topography are significant strengths.

• Road Access: The property is located within a modern commercial office park with direct access from Renaissance Drive. It is situated immediately adjacent to major arterial roads and the I-294 (Tri-State Tollway), ensuring straightforward access from regional transportation hubs. The public roads are paved, wide, and appear to be designed to accommodate commercial truck traffic.
• Equipment Delivery: The high quality of the road network suggests that delivery of heavy and oversized equipment, including multi-ton transformers, switchgear, and containerized battery systems, will be feasible. A detailed logistics plan should verify specific turning radii from public roads onto the subject parcel, but no major impediments are anticipated.
• Topography: As is characteristic of the Chicago metropolitan area, the terrain is expected to be flat to gently sloping. This is ideal for BESS development, as it will minimize earthwork and grading costs, simplifying foundation design and overall site preparation. Requires Verification via a topographical survey.
• Easement Concerns: As a developed commercial parcel, the site is almost certain to be encumbered by existing utility easements (power, water, sewer, communications). A full ALTA/NSPS Land Title Survey and Title Commitment review is mandatory to identify the location and nature of these easements to ensure they do not conflict with the proposed BESS equipment layout.

2. Environmental Constraints

Overall Assessment: Moderate Risk. The site benefits from a lack of ecological constraints but faces critical unknowns regarding potential contamination and hydrological risks.

• FEMA Flood Zone: The flood zone designation is currently Unknown. This is a critical data gap. Any portion of the buildable area falling within a 100-year floodplain (e.g., Zone A or AE) would introduce significant design complexity and cost (e.g., raising all equipment pads) or could render the site undevelopable. A FEMA FIRMette review is an immediate next step.
• Wetlands: The presence of wetlands is Unknown. A desktop screening using the National Wetlands Inventory (NWI) database is required. If potential wetlands are identified, a formal wetland delineation would be necessary. The presence of jurisdictional wetlands would trigger setback requirements and could materially reduce the buildable acreage.
• Critical Habitat: The data indicates no critical habitat or protected areas on or near the site. This is a significant advantage, as it greatly reduces the risk of project delays or mitigation requirements related to the Endangered Species Act.
• Brownfield/Superfund Status: The presence of a Superfund site within two miles is a notable risk factor. While not on the subject parcel itself, it increases the likelihood of area-wide contamination. A Phase I Environmental Site Assessment (ESA) is non-negotiable to establish a baseline and protect against liability. However, this also presents an opportunity: if the Phase I ESA determines our site qualifies as a "brownfield" under IRA guidelines, the project could be eligible for the 10% Brownfield ITC adder, turning a potential liability into a financial benefit.
• Pipeline Proximity: