⚡ 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 O'Hare" (1480 Renaissance Dr, Park Ridge, IL)

This report provides a comprehensive due diligence analysis for the potential acquisition and development of a battery energy storage system (BESS) at 1480 Renaissance Dr, Park Ridge, Cook County, IL (APN: 09-22-110-005-0000). The analysis covers key development pillars including site characteristics, environmental constraints, grid infrastructure, regulatory hurdles, and financial incentives under the Inflation Reduction Act (IRA).

1. Site Access & Topography

Road Access & Feasibility: The site benefits from direct access via Renaissance Drive, a public road within a well-developed commercial office park. Paved, public access is a significant advantage, suggesting that standard construction vehicles and delivery trucks can reach the site without issue. A desktop review indicates these are wide, well-maintained roads capable of handling heavy loads.

Terrain & Equipment Access: Located in the greater Chicago area, the site's topography is presumed to be exceptionally flat. This is highly advantageous for BESS development, as it will minimize civil engineering costs associated with grading and site preparation. The flat terrain and quality road network strongly suggest that heavy equipment, including mobile cranes, transformers, and prefabricated battery enclosures (containers), can be delivered and maneuvered on-site. Actionable Insight: A detailed logistics plan should verify turning radii from major highways (e.g., I-294, I-90) to the site and confirm the absence of low-clearance bridges or weight-restricted local roads.

Easement Concerns: No access easements are noted in the preliminary data, as access is directly from a public right-of-way. However, a full title report is required to identify any utility, drainage, or other encumbrances that could restrict the placement of equipment on the parcel. There is a notable discrepancy between the "Total Acres" (35.02) and "Parcel Acres (Regrid)" (2.97). This must be clarified immediately, as 2.97 acres is a viable, but tight, footprint for a 5MW BESS with required setbacks and access roads.

2. Environmental Constraints

Flood & Wetlands: FEMA Flood Zone and Wetlands status are both listed as "Unknown." These are critical, potentially fatal-flaw data gaps. Requires Verification: An immediate desktop screening using the FEMA Flood Map Service Center and the U.S. Fish and Wildlife Service (USFWS) National Wetlands Inventory (NWI) is required. If the site is within a Special Flood Hazard Area (SFHA), development will require elevating all equipment above the Base Flood Elevation, adding significant cost. The presence of jurisdictional wetlands would trigger setback requirements and potentially lengthy permitting through the Army Corps of Engineers, reducing the buildable area.

Habitat & Protected Species: The data indicates no critical habitat or protected areas on or near the site, which is a significant de-risking factor. This reduces the likelihood of needing extensive wildlife surveys or facing restrictions under the Endangered Species Act. A confirmation check using the USFWS IPaC tool is still recommended as a standard diligence step.

Brownfield/Superfund Status: The presence of a Superfund site within two miles is a moderate concern that must be investigated via a Phase I Environmental Site Assessment (ESA) to ensure no contaminant migration poses a risk to our site. Conversely, the site's current use as a multi-story office building makes it highly unlikely to qualify as a "brownfield" itself. Therefore, the 10% IRA brownfield bonus is not a likely opportunity here. The risk of pre-existing contamination from off-site sources outweighs the potential for an incentive.

Other Considerations: The site is not in the Chesapeake Bay Critical Area. The absence of pipelines within a three-mile radius is a major safety and layout advantage, eliminating concerns about pipeline-related setbacks and explosion risks.

3. Grid Infrastructure & Interconnection

Substation & POI: The nearest substation and its characteristics are unknown. This is the single most critical unknown for the project's technical and financial viability. For a ≤5MW project, the ideal Point of Interconnection (POI) is an adjacent or nearby 12.47kV or 34.5kV distribution feeder. Actionable Insight: A specialized grid consultant must be engaged immediately to identify the local Commonwealth Edison (ComEd) distribution circuits, substation source, and likely feeder capacity.

Transmission Proximity: A 138kV ComEd transmission line is located 1.5 miles away. While this indicates a robust grid in the area, interconnecting a 5MW BESS at transmission voltage is cost-prohibitive and unnecessarily complex. This option should be considered a non-starter; the focus must remain on distribution-level interconnection.

Interconnection Cost & Timeline: Without a defined POI, costs are highly speculative. A best-case scenario (tapping an adjacent overhead feeder with available capacity) might range from $500k to $1M. A worst-case scenario (requiring a new feeder exit from a distant substation or significant system upgrades) could easily exceed $2M - $3M. The interconnecting utility is ComEd, which operates within the PJM Interconnection RTO. PJM's generation interconnection queue is notoriously long and complex. While smaller distribution-level projects may follow a more streamlined utility process, significant delays are still common. A realistic timeline from application submission to an Interconnection Agreement could be 18-24 months.

Feeder Configuration: The feeder in this dense commercial area could be overhead or underground. Underground infrastructure would significantly increase the cost and complexity of the interconnection tap.

4. Regulatory & Zoning Analysis

Jurisdiction & Zoning: The Authority Having Jurisdiction (AHJ) is the City of Park Ridge. The property is zoned "O" (Office). This zoning designation is a