⚡ 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"

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

RECOMMENDATION: MAYBE

This report provides a comprehensive initial diligence analysis for the subject property for the potential development of a distribution-scale (≤5MW) Battery Energy Storage System (BESS). The site possesses a critical financial incentive through its Energy Community status but faces significant and immediate uncertainty regarding grid interconnection and local permitting. The current recommendation is MAYBE, pending the successful and timely resolution of key risks outlined below. Substantial de-risking is required before committing significant development capital.

1. Site Access & Topography

• Road Access & Feasibility: The property benefits from excellent access via Renaissance Drive, a publicly maintained road within a commercial office park. Its proximity to major thoroughfares, including I-294, suggests that roadways are built to a high standard, capable of handling heavy truck traffic. This is a significant advantage for the delivery of heavy equipment.
• Terrain Characteristics: As is typical for Cook County, the terrain is expected to be exceptionally flat. The site is currently developed with a multi-story office building, indicating it is already graded and stable. This will dramatically reduce civil engineering costs and site preparation time compared to a greenfield site.
• Heavy Equipment Access: Access for large cranes, tractor-trailers carrying battery containers, and medium-power transformers appears feasible. A detailed logistics plan would be required to verify turning radii within the office park and confirm no local bridge weight restrictions exist, but no immediate fatal flaws are apparent.
• Easement Concerns: Requires Verification. As a parcel within a larger commercial development, it is highly probable that the property is encumbered by multiple easements (e.g., access, utility, drainage, parking). A full title report and ALTA survey are critical to identify these constraints and determine the true net buildable area, which could be significantly smaller than the gross acreage. The discrepancy between the "Total Acres" (35.02) and "Parcel Acres (Regrid)" (2.97) must be resolved immediately; we assume the 2.97 acres is the correct parcel size for this analysis.

2. Environmental Constraints

• FEMA Flood Zone: Requires Verification. The FEMA flood zone designation is currently unknown. This is a critical data gap. If the site is located within a Special Flood Hazard Area (e.g., Zone AE), it could necessitate raising all equipment above the Base Flood Elevation, adding substantial cost, or rendering the site undevelopable. An immediate desktop review using the FEMA Map Service Center is required.
• Wetlands: Requires Verification. The presence of wetlands is unknown. A desktop screening using the National Wetlands Inventory (NWI) is a priority. Given the developed nature of the site, the risk of jurisdictional wetlands is likely low, but if present, they would impose significant setbacks (typically 50-100 feet) and constrain the site layout.
• Critical Habitat / Endangered Species: The data indicates no critical habitat or protected areas on or near the site. This is a positive finding that simplifies federal and state environmental permitting. This should be confirmed via a USFWS IPaC report during formal diligence.
• Brownfield/Superfund Status: The subject parcel itself is not identified as a brownfield. However, the presence of one Superfund/brownfield site within two miles presents a minor risk of potential contaminant migration. A Phase I Environmental Site Assessment (ESA) is strongly recommended to assess this risk and establish a baseline. Importantly, because the site itself is not a designated brownfield, it is not eligible for the 10% IRA brownfield tax credit adder.
• Pipeline Proximity: The absence of major gas pipelines within a three-mile radius is a significant safety and layout advantage, eliminating concerns related to pipeline setbacks and explosion risk assessments.

3. Grid Infrastructure & Interconnection

• Nearest Substation & Feeder: CRITICAL DATA GAP. Information on the nearest substation and distribution feeder is completely missing. This is the single greatest risk and point of uncertainty for the project. A viable project requires a 3-phase distribution feeder (likely 12.47kV in ComEd territory) with sufficient thermal capacity and a favorable position on the circuit. Without this, the project is not feasible.
• Transmission Infrastructure: A 138kV transmission line is located 1.5 miles away. This is not a viable Point of Interconnection (POI) for a ≤5MW project due to the extreme cost of a transmission-level tap and substation. This project's viability is entirely dependent on distribution grid access.
• Recommended Interconnection: The only feasible path is a distribution-level interconnection, targeting a local Commonwealth Edison (ComEd) 12.47kV or similar voltage feeder.
• Cost & Timeline Estimate: Requires Verification. It is impossible to estimate costs without an identified POI. A direct feeder tap adjacent to the site could be in the $500k - $1M range. If a dedicated feeder run of over a mile to a substation is required, costs could easily exceed $2M - $4M. ComEd's interconnection process can be lengthy, with study periods often taking 9-18 months or more before an Interconnection Agreement is executed.
• Utility & Process: The interconnecting utility is Commonwealth Edison (ComEd), which is part of the PJM RTO. For a project of this size, it would likely fall under ComEd's distributed generation (DG) interconnection process. We must engage a consultant familiar with ComEd's specific technical requirements and queue dynamics to get a realistic assessment of feasibility and timeline.

4. Regulatory & Zoning Analysis

• Authority Having Jurisdiction (AHJ): The City of Park Ridge is the primary AHJ for zoning and building permits. Cook County may have some overlay jurisdiction (e.g., environmental).
• Zoning Compatibility: The site is zoned "O - Office District". BESS is not an explicitly defined or permitted use in this district. This type of "silent" ordinance presents a significant permitting challenge. It will not be a by-right use.
• Permitting Pathway: The most likely pathway is a Conditional Use Permit (CUP) or Special Exception. This is a discretionary process that requires public hearings, review by the planning commission, and final approval by the city council. This process introduces significant timeline risk (6-12 months) and political risk, as it is subject to community opposition ("NIMBYism").
• Setback Requirements: Specific BESS setbacks are likely not codified. Setbacks would be negotiated during the CUP process, but the base setbacks for the "O" district would apply as a minimum. We must assume significant setbacks from property lines (e.g., 50+ feet) and potentially residential adjacencies.
• Moratorium Risk: There are no known BESS-specific moratoriums in Park Ridge, but this must be confirmed immediately via a pre-application meeting with the city's Planning & Zoning department. This meeting is also crucial to gauge the city's general receptiveness to this type of infrastructure.

5. IRA/ITC Incentive Analysis

• Opportunity Zone: No. Not