⚡ 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 "Project Renaissance"

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

Recommendation: MAYBE (Proceed with extreme caution and limited initial capital outlay)

1. Site Access & Topography

The subject property is located within a well-developed commercial office park in Park Ridge, a suburb of Chicago. Road access is listed as public and appears to be excellent, with paved roads (Renaissance Drive) designed for commercial traffic. This is highly advantageous for the delivery of heavy and oversized equipment, including battery containers, pad-mount transformers, and switchgear. A preliminary review of aerial imagery suggests the local road network can accommodate large trucks, though a formal route survey would be required prior to any equipment mobilization.

The topography in this region of Illinois is typically flat to gently rolling, and the site appears to be graded for its current commercial use. This significantly reduces potential civil engineering costs associated with site grading and preparation. However, a key unknown is the presence of existing site infrastructure. The parcel is part of a larger office complex, and there may be underground utilities, parking lot lighting conduits, or stormwater management systems that could constrain the buildable envelope. A critical data discrepancy exists regarding parcel size: the primary data sheet lists 35.02 acres, while Regrid data indicates 2.97 acres for this specific APN. This must be clarified immediately, as 2.97 acres is adequate for a ≤5MW BESS, but leaves little room for error, whereas 35 acres offers significant flexibility. Access easements are a potential concern; a title report is required to identify any existing access or utility easements that may encumber the property and restrict placement of BESS equipment.

2. Environmental Constraints

Environmental diligence reveals several significant data gaps that represent potential fatal flaws. The FEMA flood zone and wetlands status are both listed as "Unknown." This is a critical risk. If the site is located within a Special Flood Hazard Area (e.g., Zone AE), development costs would increase substantially due to the need to elevate all equipment above the Base Flood Elevation, and permitting could be complicated. The presence of jurisdictional wetlands would trigger significant setbacks (typically 50-100 feet) and require permits from the Army Corps of Engineers, severely reducing the buildable area.

On a positive note, the site is not within a critical habitat or protected area, and there are no pipelines within a 3-mile radius, which mitigates safety and setback concerns. There is one Superfund/Brownfield site located within two miles, but not on the subject parcel. A Phase I Environmental Site Assessment (ESA) is strongly recommended to ensure no contamination has migrated to our site and to establish a baseline environmental condition. While the site is not a designated brownfield, making the 10% brownfield ITC adder unlikely, its qualification as an Energy Community via another category makes this less critical. The site is not in Maryland, so the Chesapeake Bay Critical Area is not applicable.

3. Grid Infrastructure & Interconnection

This category represents the single greatest risk to the project's viability. There is no data provided on the nearest distribution substation or feeder, which is the lifeblood of a distribution-scale BESS project. The only identified grid infrastructure is a 138kV transmission line located 1.5 miles away. Interconnecting to a 138kV line is prohibitively expensive for a ≤5MW project, often costing upwards of $10-15 million and requiring a multi-year process. This option is not commercially viable.

The project's success is entirely dependent on the presence of a nearby Commonwealth Edison (ComEd) 3-phase distribution feeder with sufficient available capacity. The likely interconnection voltage would be 12.47kV or 34.5kV. A desktop analysis using aerial imagery and a subsequent site visit are required immediately to identify overhead or underground distribution lines adjacent to the property. Assuming a viable feeder is located at the property boundary, interconnection costs could be in the range of $500k - $1.5M. If the nearest feeder requires significant upgrades or is miles away, costs could easily exceed $3M+, rendering the project uneconomical. The ComEd interconnection queue can be lengthy, with timelines from application to operation often spanning 24-36 months. Identifying a viable Point of Interconnection (POI) is the most urgent priority for this site.

4. Regulatory & Zoning Analysis

The regulatory landscape presents a significant hurdle. The Authority Having Jurisdiction (AHJ) is the City of Park Ridge. The property is zoned 'O' - Office District. Battery energy storage is a quasi-industrial or utility use and is almost certainly not a permitted "by-right" use in an Office zone. This zoning mismatch creates substantial entitlement risk.

The most likely permitting pathway would be a Conditional Use Permit (CUP) or a Special Exception, which would require a public hearing process before the Planning Commission and/or City Council. This process introduces uncertainty, potential for costly project modifications, and the risk of denial due to community opposition (NIMBYism), which can be pronounced in established suburban communities like Park Ridge. A thorough review of the Park Ridge Unified Development Ordinance is required to understand specific requirements, setbacks, and noise limitations for utility-scale equipment. We must also verify if the city has any existing or pending moratoriums on BESS development. Engaging local land use counsel early is essential to navigate this complex and