⚡ 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" (1480 Renaissance Dr, Park Ridge, IL)

This report provides a comprehensive due diligence analysis for the potential Battery Energy Storage System (BESS) project located at 1480 Renaissance Dr, Park Ridge, in Cook County, Illinois. The analysis evaluates the site's suitability for a distribution-scale (≤5MW) BESS project based on key technical, environmental, regulatory, and financial criteria.

1. Site Access & Topography

Road Access: The property has direct frontage on Renaissance Drive, a publicly maintained road within a developed commercial office park. Based on satellite imagery review, the road appears to be paved and well-maintained, suitable for standard construction traffic and large vehicle deliveries.

Equipment Delivery: Access for heavy equipment, including tractor-trailers carrying battery containers, medium-voltage transformers, and switchgear, appears feasible. The surrounding road network connects to major thoroughfares, mitigating transportation logistics risk. However, a detailed turning radius analysis and a route survey should be conducted prior to any financial commitment to confirm no obstructions exist for oversized loads.

Topography & Site Conditions: As is typical for the Chicago metropolitan area, the site is expected to be exceptionally flat with minimal grade. This significantly reduces earthwork and civil engineering costs. The existing land use as a commercial office property suggests the site is already cleared and graded, which is a major advantage for buildability. A geotechnical study will still be required to assess soil bearing capacity for equipment foundations.

Easement Concerns: With direct public road frontage, a dedicated access easement is not anticipated. However, we must verify that no existing utility or access easements cross the proposed development footprint, which could constrain the site layout. This requires a title search.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is currently Unknown. This is a critical data gap. A review of FEMA's Flood Insurance Rate Maps (FIRMs) is an immediate next step. If the site is located within a Special Flood Hazard Area (e.g., Zone A or AE), development costs could increase substantially due to the need for elevated foundations, or the site could be rendered undevelopable.

Wetlands: The presence of jurisdictional wetlands is Unknown. A desktop screening using the National Wetlands Inventory (NWI) is required. Given the developed nature of the area, the risk is likely low, but any identified wetlands would trigger significant setback requirements (typically 50-100 feet) and a lengthy permitting process with the U.S. Army Corps of Engineers, potentially impacting the buildable area.

Critical Habitat / Species: The data indicates no critical habitat or protected areas on or near the site. This is a significant positive, reducing the risk of project delays or mitigation costs associated with the Endangered Species Act. This should be confirmed with a formal desktop environmental screening.

Brownfield/Superfund Status: There is one Superfund/brownfield site located within two miles. This presents both a risk and a potential opportunity.

• Risk: We must investigate if any contamination from the nearby site could have migrated to our subject parcel. A Phase I Environmental Site Assessment (ESA) is mandatory.
• Opportunity: If the subject parcel itself can be classified as a "brownfield site" under IRA guidelines (e.g., due to prior contamination, even if minor), the project could qualify for the 10% Brownfield ITC adder. This requires further investigation into the site's historical use.

Pipeline Proximity: The absence of major gas transmission pipelines within a three-mile radius is a major safety and layout advantage, eliminating concerns related to pipeline operator-mandated setbacks and explosion risk assessments.

3. Grid Infrastructure & Interconnection

Nearest Substation & POI: This is the most significant unknown and the highest-risk item for the project. Data on the nearest Commonwealth Edison (ComEd) distribution substation, including its distance and available capacity, is missing. Without a viable Point of Interconnection (POI), this site is not feasible. Identifying the local distribution feeder and its host substation is the top priority.

Transmission Infrastructure: A 138kV ComEd transmission line is located 1.5 miles away. For a distribution-scale project (≤5MW), this is not a viable POI. The cost to build a 1.5-mile tie-line and construct a new substation for a 138kV interconnection would be prohibitively expensive (likely >$10M) and is not a consideration.

Recommended Interconnection: The only feasible path is a distribution-level interconnection to a local ComEd 3-phase feeder, likely operating at 12.47kV or 34.5kV. We must verify the presence, phasing, and voltage of the circuits along Renaissance Drive.

Cost & Timeline Estimate: This is highly speculative. Assuming a suitable 3-phase feeder is adjacent to the site with available capacity, interconnection costs could range from $750,000 to $2,000,000. If the feeder requires significant upgrades or a new feeder exit from the substation is needed, costs could easily exceed $3,000,000. The ComEd interconnection process runs through the PJM Interconnection queue, which is notoriously backlogged. A realistic timeline from application submission to Commercial Operation is 24-48 months.

4. Regulatory & Zoning Analysis

Authority Having Jurisdiction (AHJ): The City of Park Ridge.

Zoning Compatibility: The parcel is zoned "O" - Office District. BESS is not a traditional office use and is almost certainly not a permitted "by-right" use. This zoning presents a significant permitting challenge.

Permitting Pathway: The most likely pathway is a Conditional Use Permit (CUP) or Special Use Permit (SUP). This process requires public hearings and discretionary approval from the Park Ridge Planning and Zoning Commission and/or City Council. This introduces significant political and community opposition (NIMBY) risk. An alternative, more difficult path could be a full rezoning request. A pre-application