⚡ 1480 RENAISSANCE DR

MEMORANDUM

TO: Sunland America Corp. Investment Committee
FROM: Senior BESS Site Evaluation Analyst
DATE: October 26, 2023
SUBJECT: Comprehensive Site Diligence Analysis for "Project Renaissance" (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) project at 1480 Renaissance Dr, Park Ridge, Cook County, Illinois (APN: 09221100050000). The analysis evaluates the site's suitability across key development pillars, including physical characteristics, grid access, environmental and regulatory constraints, and financial incentives.

1. Site Access & Topography

The subject property is located within a well-developed commercial office park, immediately adjacent to Interstate 294. Road access is excellent, with frontage on Renaissance Drive, a paved public road capable of supporting heavy vehicle traffic. The primary logistical concern, the delivery of large, heavy equipment such as battery containers, main power transformers, and switchgear, appears to be low-risk. The existing road network was designed to accommodate semi-trailer trucks for office supply and construction. Based on aerial imagery and the general geography of the Chicago metropolitan area, the site's topography is presumed to be flat, which is ideal for BESS construction as it minimizes civil work and grading costs. A formal topographic survey will be required to confirm elevations and drainage patterns. A significant data discrepancy exists regarding parcel size (35.02 acres vs. 2.97 acres from different data sources). Assuming the 2.97-acre figure is correct for the specific parcel, access should be contained within the parcel boundaries, but a title search is critical to identify any access or utility easements that may encumber the property and restrict equipment placement or movement.

2. Environmental Constraints

Environmental conditions present both opportunities and risks that require immediate investigation. Key data points are currently unknown and represent critical diligence items.

• FEMA Flood Zone: Requires Verification. The FEMA flood designation is unknown. Any location within a Special Flood Hazard Area (SFHA), such as Zone A or AE, would necessitate elevating all critical equipment above the Base Flood Elevation (BFE), adding significant cost and complexity to the project's civil engineering design.
• Wetlands: Requires Verification. The presence of jurisdictional wetlands is unknown. A desktop review of the National Wetlands Inventory (NWI) is the first step, to be followed by a formal wetland delineation if the screening indicates potential presence. Any identified wetlands would require development setbacks (typically 50-100 feet in Illinois), which could materially constrain the buildable area on a smaller ~3-acre parcel.
• Brownfield/Superfund Status: The data indicates one Superfund site within a two-mile radius. While the subject parcel is not listed, its location in a developed commercial area raises the possibility of historical contamination. This presents a potential advantage. Under the Inflation Reduction Act (IRA), a site that qualifies as a "brownfield" under 42 U.S.C. § 9601(39) is eligible for a 10% ITC bonus. A Phase I Environmental Site Assessment (ESA) is strongly recommended to determine if the site meets this definition, which could significantly enhance project economics.
• Other Constraints: The site shows no risk related to critical habitats, protected areas, or nearby oil and gas wells. Proximity to pipelines is not a concern. The site is not located in the Chesapeake Bay Critical Area.

3. Grid Infrastructure & Interconnection

Grid access is currently the single greatest risk and uncertainty for this project. The economic viability of a distribution-scale BESS is entirely dependent on a cost-effective interconnection point.

• Nearest Substation: Requires Verification. Data on the nearest distribution substation (distance, voltage, available capacity) is completely missing. This is a fatal flaw if a suitable Point of Interconnection (POI) cannot be identified. The highest priority next step is to engage a consultant to perform a desktop grid analysis using Commonwealth Edison (ComEd) system maps.
• Transmission Access: A 138kV ComEd transmission line is located 1.5 miles from the site. For a project of this scale (≤5MW), interconnecting at transmission voltage is not economically feasible. The cost of a 1.5-mile gen-tie line and the associated substation work would likely exceed $5 million, rendering the project unviable.
• Recommended Interconnection: The only viable path is an interconnection to a local ComEd distribution feeder, likely at 12.47kV or