⚡ 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 – 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 covers key development pillars including site characteristics, environmental constraints, grid infrastructure, regulatory hurdles, and financial incentives.

1. Site Access & Topography

Road Access & Feasibility: The site is located within a well-developed commercial office park with direct access from Renaissance Drive, a public road. Primary access from major transportation corridors like I-294 and I-90 appears to be straightforward via multi-lane arterial roads. This high-quality public road access is a significant advantage, suggesting that standard construction traffic and component delivery (e.g., flatbed trucks) will not face significant logistical challenges. Requires Verification: A route survey should be conducted to confirm the absence of low-clearance bridges or weight-restricted roads between the interstate and the site.

Terrain & Buildability: The property is in the Chicagoland area, which is characterized by exceptionally flat terrain. We anticipate minimal grading will be required, reducing site preparation costs and timelines. The primary buildability concern is a significant data discrepancy regarding parcel size: the master property data lists 35.02 acres, while the Regrid parcel data indicates 2.97 acres for this specific APN. A 3-acre site is sufficient for a 5MW BESS, but this ambiguity is a critical issue that must be resolved. The site is currently developed with a multi-story office building, meaning development would likely occur on an existing paved parking lot or adjacent landscaped area, which is ideal for minimizing civil work.

Heavy Equipment Access: Access for heavy equipment, including a large crane for setting transformers and battery containers, appears feasible given the office park setting with wide roads and large parking areas. The primary constraint will be navigating the existing site layout to reach the designated BESS footprint without disrupting existing tenants or infrastructure.

Easement Concerns: As a developed commercial property, the site is almost certainly encumbered by existing utility easements (power, water, sewer, communications). A title report and ALTA survey are mandatory to identify these easements, as they will dictate the usable buildable area for the BESS compound. No new access easements are anticipated to be required from the public right-of-way.

2. Environmental Constraints

Flood Zone & Wetlands: The FEMA flood zone and wetlands status are both listed as Unknown. These are critical data gaps representing a potential fatal flaw. The nearby Des Plaines River creates flood risk in the region. A high-priority next step is to conduct a desktop review using FEMA's Map Service Center and the U.S. Fish and Wildlife Service's National Wetlands Inventory (NWI). If any risk is identified, a formal flood zone determination and wetlands delineation will be required. Any presence of a Special Flood Hazard Area (SFHA) or jurisdictional wetlands would impose significant design constraints, increase costs due to mitigation or elevated construction, and could render the site undevelopable.

Habitat & Protected Species: The data indicates no critical habitat or protected areas on or near the site. Given its location in a dense, long-developed commercial corridor, the risk of encountering endangered species is considered extremely low. This significantly de-risks the environmental permitting process.

Brownfield/Superfund Status: The property is not listed as a brownfield or superfund site, but one such site exists within a two-mile radius. This presents a potential opportunity. Under the Inflation Reduction Act (IRA), a site can qualify for the 10% brownfield ITC adder if it meets specific criteria, which can include previously developed commercial land, even if not officially contaminated. This possibility should be investigated with legal and tax counsel, as it could substantially improve project economics.

Pipeline Proximity: No major gas transmission pipelines are identified within a three-mile radius. This is a strong positive, eliminating risks associated with pipeline-related setbacks, safety protocols, and potential stakeholder opposition.

3. Grid Infrastructure & Interconnection

Substation & Feeder: The nearest substation is Unknown in the provided data, a major risk factor. A desktop survey identifies the ComEd Park Ridge Substation located approximately 1.0-1.2 miles east of the site. This substation appears to host both transmission (138kV) and distribution circuits. The most likely Point of Interconnection (POI) for a ≤5MW BESS would be a 12.47kV or 34.5kV distribution feeder originating from this substation and serving the office park. Requires Verification: The existence, voltage, and available capacity of a suitable 3-phase distribution feeder must be confirmed with the utility, Commonwealth Edison (ComEd).

Transmission Proximity: A 138kV ComEd transmission line is located 1.5 miles from the site. Interconnecting at transmission voltage for a 5MW project would be prohibitively expensive and complex, involving the construction of a new project substation. Therefore, a distribution-level interconnection is the only commercially viable path.

Interconnection Cost & Timeline: Assuming a viable distribution feeder is available from the Park Ridge Substation, the interconnection cost for a 1-mile line extension could range from $1.5M to $3.5M. Costs would be on the higher end if the line must be placed underground to comply with office park aesthetics or municipal requirements. The interconnection process will be managed through the PJM RTO queue. Given current backlogs, the full study process (Feasibility, System Impact, Facilities) can be expected to take 24-36 months before an Interconnection Service Agreement (ISA) is executed. This long timeline is a significant project risk.

4. Regulatory & Zoning Analysis

Jurisdiction & Zoning: The Authority Having Jurisdiction (AH