⚡ 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 identifies key opportunities, constraints, risks, and recommended next steps for project consideration.

1. Site Access & Topography

Road Access & Feasibility: The site has excellent access. It is located in a well-developed commercial office park directly off Renaissance Drive, a paved, public road. This road connects to major thoroughfares including I-294, ensuring straightforward access for all construction vehicles and equipment deliveries. The existing infrastructure is designed for commercial traffic, which is a significant advantage.

Terrain & Equipment Access: The topography of the site and the surrounding area is flat, characteristic of the Chicagoland region. The target development area appears to be the existing surface parking lot associated with the multi-story office building. This provides a pre-graded, stable surface ideal for the placement of BESS containers, transformers, and switchgear. Heavy equipment, including cranes for setting transformers and battery enclosures, will have no difficulty accessing and maneuvering on the property.

Easement Concerns: While road access is public, a full title report is required to identify any existing utility easements that may cross the proposed development area within the parking lot. Easements for underground power, water, or communications lines could constrain the final site layout and must be identified early. Requires Verification: Title search to confirm easements.

2. Environmental Constraints

Flood Zone & Wetlands: The FEMA flood zone and wetlands status are currently unknown. This is a critical data gap. A desktop environmental screening is immediately required to assess these risks. Given the property's proximity to the Des Plaines River (approx. 1 mile east), there is a moderate risk of being in or near a designated floodplain, which could necessitate elevating equipment or render portions of the site undevelopable. Similarly, while unlikely on a developed commercial parcel, wetlands must be formally delineated if screening indicates a potential presence.

Brownfield/Superfund Status: The property is not listed as a brownfield, but a Superfund site is noted within a 2-mile radius. The key opportunity here is determining if this specific parcel qualifies as a "brownfield site" under IRA guidelines (e.g., through perceived contamination from prior use). A Phase I Environmental Site Assessment (ESA) is essential. If it qualifies, the project would be eligible for a 10% ITC bonus adder. This is a significant financial advantage, but it also carries the risk that a Phase I/II ESA could uncover actual contamination requiring costly remediation. This is a classic risk/reward scenario.

Other Constraints: The site has no identified critical habitats, protected areas, or nearby pipelines, which significantly de-risks the project from these perspectives. The Chesapeake Bay Critical Area is not applicable.

3. Grid Infrastructure & Interconnection

Substation & POI: This is the most significant unknown and the highest-risk aspect of the site. No substation or distribution feeder information was provided. The nearest identified infrastructure is a 138kV transmission line 1.5 miles away, which is not a viable Point of Interconnection (POI) for a ≤5MW project due to excessive cost and complexity.

Likely Interconnection Scenario: The interconnecting utility is Commonwealth Edison (ComEd). The project will target a distribution-level interconnection, likely at 12.47kV or 34.5kV. Given the commercial office park setting, there is certainly a 3-phase distribution feeder serving the property, which is likely underground. The critical question is whether this feeder has sufficient available capacity to accommodate a 5MW BESS injection/withdrawal without requiring extensive and costly upgrades (e.g., reconductoring, substation breaker upgrades).

Estimated Cost & Timeline: Interconnection costs are highly speculative without a POI.

• Best Case: Tapping an adjacent feeder with available capacity. Cost: $750k - $1.5M. Timeline: 18-24 months.
• Worst Case: Requiring a new dedicated feeder from the nearest substation or significant substation upgrades. Cost: $2.5M+. Timeline: 36+ months.

4. Regulatory & Zoning Analysis

Jurisdiction & Zoning: The Authority Having Jurisdiction (AHJ) is the City of Park Ridge. The property is zoned "O" - Office District. Battery energy storage is not a listed use in this district.

Permitting Pathway: BESS is not a by-right use. The project will require a discretionary permit, most likely a Special Use Permit (SUP). This process involves public hearings, review by the Planning and Zoning Commission, and final approval by the City Council. This introduces significant timeline risk (6-12 months) and outcome uncertainty. Community engagement will be critical to address potential concerns about safety and aesthetics.

Setbacks & Regulations: Specific BESS setback requirements are likely not codified in Park Ridge's ordinances. They will be negotiated and established as conditions of approval during the SUP process. We should proactively propose setbacks consistent with industry best practices (e.g., NFPA 855) and be prepared to provide extensive safety documentation. There are no known moratoriums on BESS in Park Ridge, but this must be confirmed directly with city staff.

5. IRA/ITC Incentive Analysis

The site is well-positioned to capitalize on IRA incentives, which significantly enhances its financial viability.

• Base ITC: 30%
• Opportunity Zone: No (0% adder)
• Energy Community: Yes. The site qualifies as a Fossil Fuel Employment (FFE