⚡ 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)

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 significant opportunities related to federal incentives but flags critical deficiencies in grid infrastructure data and major regulatory hurdles that must be addressed before committing further resources.

1. Site Access & Topography

Road Access: The site has direct access from Renaissance Drive, which is a public, paved road within a commercial office park. Based on satellite imagery review, the road network appears well-maintained and designed to accommodate commercial traffic, including delivery trucks.

Equipment Delivery: The existing infrastructure is likely sufficient for the delivery of standard semi-trailers carrying battery containers, inverters, and switchgear. However, a detailed route survey is required to confirm turning radii and the absence of vertical clearance issues for the delivery of the main power transformer, which is the largest and heaviest piece of equipment. The proximity to major highways (I-294) is a logistical advantage.

Topography & Site Layout: The terrain in Park Ridge is characteristically flat, which is ideal for BESS development as it minimizes civil engineering and grading costs. The primary buildable area appears to be a surface parking lot associated with the existing office building. This presents both an opportunity (already graded and cleared) and a challenge (potential conflict with existing use, need for parking variance). There is a notable discrepancy in parcel size between data sources (35.02 acres vs. 2.97 acres). We will proceed assuming the 2.97-acre parcel is the target, which is ample for a ≤5MW BESS project.

Easements: Requires Verification. No access easement issues are anticipated given the public road frontage. However, a full title report is mandatory to identify any utility easements (UEs), drainage easements, or restrictive covenants associated with the office park that could limit the placement of BESS equipment.

2. Environmental Constraints

FEMA Flood Zone: Requires Verification. The FEMA flood zone designation is currently unknown. This is a critical data gap. Any portion of the site located within a 100-year floodplain (e.g., Zone AE) would significantly increase civil costs due to the need for elevated equipment pads or could render the site undevelopable. A high-priority next step is to check the effective FEMA Flood Insurance Rate Map (FIRM).

Wetlands: Requires Verification. The presence of jurisdictional wetlands is unknown. While a developed commercial site is less likely to have significant wetlands, a desktop screening using the National Wetlands Inventory (NWI) is required. If potential wetlands are identified, a formal delineation will be necessary, which could trigger substantial setbacks (e.g., 50-100 ft buffers) and impact the buildable area.

Habitat & Protected Species: The data indicates no critical habitats or protected areas on or immediately adjacent to the site. This is a positive finding that reduces the risk of lengthy and complex environmental reviews (e.g., USFWS consultation).

Brownfield/Superfund Status: The presence of a Superfund site within two miles is noted but is not an immediate risk unless a groundwater contamination plume extends beneath our parcel. The key insight here is the potential for this site to qualify as a "brownfield" under IRA guidelines, which would unlock a 10% ITC bonus. While currently an office building, a Phase I Environmental Site Assessment (ESA) should investigate historical land uses to determine if any recognized environmental conditions (RECs) exist that could support a brownfield designation. This is a potential opportunity.

Pipeline Proximity: The absence of major gas transmission pipelines within three miles is a significant safety and layout advantage, eliminating concerns related to pipeline setbacks and explosion risk assessments.

3. Grid Infrastructure & Interconnection

Nearest Substation & Feeders: Requires Verification. This is the most critical information gap for the project. The data for the nearest distribution substation (distance, voltage, capacity) is missing. Without a viable Point of Interconnection (POI), the project is not feasible. A desktop analysis using ComEd system maps and satellite imagery is immediately required to identify the nearest 3-phase distribution feeders. The likely feeder configuration in this commercial area would be a 12.47kV or 34.5kV underground or overhead line.

Transmission Infrastructure: A 138kV transmission line owned by Commonwealth Edison (ComEd) is located 1.5 miles away. For a ≤5MW project, interconnecting at transmission voltage is financially prohibitive due to the multi-million-dollar cost of a new substation bay and associated equipment. Therefore, this 138kV line should be considered an unviable POI for this project scale. Our focus must remain on distribution-level interconnection.

Interconnection Cost & Timeline: The cost and timeline are entirely dependent on the unknown POI.

• Best Case: An adjacent 3-phase distribution feeder with adequate capacity. Cost: $500k - $1.5M. Timeline: 18-24 months.
• Worst Case: No nearby feeder, requiring a new multi-mile line extension from the nearest substation. Cost: $3M - $5M+. Timeline: 36+ months.

4. Regulatory & Zoning Analysis

Authority Having Jurisdiction (AHJ): The City of Park Ridge is the primary AHJ for all zoning, planning, and building permits. Cook County regulations may also apply.

Zoning Compatibility: The current zoning is "O" (Office). This is a major regulatory risk. BESS facilities are typically considered an industrial or utility use and are almost never permitted "by-right" in an Office district.

Permitting Pathway: The most likely pathway