⚡ 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)

RECOMMENDATION: MAYBE

This report provides a comprehensive initial diligence analysis for the property located at 1480 Renaissance Drive in Park Ridge, IL, for the potential development of a distribution-scale (≤5MW) Battery Energy Storage System (BESS). The site presents a compelling financial incentive through its Energy Community status but is burdened by significant unknowns and potential challenges related to grid interconnection and local zoning. The current recommendation is MAYBE, contingent on successfully de-risking the critical items outlined in this analysis. Proceeding without immediate investigation into grid capacity and municipal receptiveness would represent an unacceptable risk.

1. Site Access & Topography

• Road Access & Equipment Delivery: The site is located in a suburban office park, immediately adjacent to public, paved roads (Renaissance Dr). Based on satellite imagery, access appears excellent, with wide streets designed to accommodate commercial traffic. The property is situated near major transportation corridors, including I-294, which is a significant advantage for the delivery of heavy equipment.
• Terrain Characteristics: As is typical for the Chicago metropolitan area, the topography appears to be flat with minimal grade change. This is ideal for BESS development, as it will significantly reduce civil engineering and site preparation costs. No major earthwork is anticipated.
• Heavy Equipment Feasibility: The existing road network can almost certainly support the weight and turning radii of semi-trucks delivering battery containers, inverters, and the main power transformer. No immediate physical barriers to access are apparent.
• Easement Concerns: A critical unknown is the exact parcel configuration and the presence of any existing access or utility easements that could encumber the buildable area. The discrepancy between the listed 35.02 acres and the Regrid parcel data of 2.98 acres is a major red flag. Action Item: An ALTA survey and title report are required immediately to confirm the legal parcel boundaries, acreage, and any recorded easements. For this analysis, we will assume the smaller, more plausible 2.98-acre parcel size is correct.

2. Environmental Constraints

• FEMA Flood Zone: The FEMA flood zone designation is currently unknown. Siting critical infrastructure within a Special Flood Hazard Area (e.g., Zone A, AE) would introduce significant design complexity, requiring elevated platforms for all equipment and potentially making the project financially unviable. Action Item: This must be verified via the FEMA Map Service Center as a priority.
• Wetlands: The presence of jurisdictional wetlands is unknown. Given the developed nature of the surrounding area, the risk is likely low, but not zero. Any identified wetlands would trigger state (IEPA) and federal (USACE) setback requirements, potentially sterilizing a significant portion of the 2.98-acre site. A desktop screening followed by a formal wetland delineation will be necessary.
• Critical Habitat / Endangered Species: The data indicates no critical habitat or protected areas on or immediately adjacent to the site. This is a positive finding that simplifies federal and state environmental permitting.
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• Brownfield/Superfund Status: The property itself is not listed as a brownfield, but one Superfund site is noted within a two-mile radius. This presents both a risk and a potential opportunity. The risk is that historic contamination from a nearby site could have migrated, which would be identified in a Phase I ESA. The opportunity is that if the subject parcel itself meets the definition of a brownfield (e.g., through a Phase II ESA identifying contamination), it could qualify for the 10% Brownfield ITC adder under the Inflation Reduction Act (IRA). This should be investigated cautiously.
• Pipeline Proximity: No major gas transmission pipelines are identified within a three-mile radius, mitigating risks associated with pipeline-related setbacks, safety protocols, and potential co-location conflicts.

3. Grid Infrastructure & Interconnection

• Nearest Substation: This is the most critical data gap. No distribution substation has been identified. The viability of a ≤5MW BESS project is entirely dependent on the proximity and available capacity of a local ComEd distribution substation. Without this information, all interconnection cost and timeline estimates are purely speculative. Action Item: This is the highest priority for the development team. We must use ComEd's public maps and submit a pre-application report immediately.
• Transmission Line Proximity: A 138kV transmission line is located 1.5 miles from the site. For a ≤5MW project, this is not a viable Point of Interconnection (POI). The cost of a new substation and a 1.5-mile gen-tie line to tap the transmission system would be in the tens of millions of dollars, rendering the project uneconomical. The project's only feasible path is a distribution-level interconnection.
• Recommended Interconnection Voltage: The project must target a local 3-phase distribution feeder, likely operating at 12.47kV or a similar standard ComEd voltage.
• Estimated Cost & Timeline: Highly speculative. If a feeder with sufficient capacity is adjacent to the site, costs could be in the $500k - $1.5M range. If a dedicated feeder from a substation 0.5-1 mile away is required, costs could easily exceed $2M - $4M. The interconnection process will be governed by Commonwealth Edison and PJM. Timelines from application to commercial operation can range from 18 to 36+ months, depending on the complexity of required upgrades.
• Feeder Configuration: The site is in a commercial area, so it is almost certainly served by a 3-phase circuit. It is likely an underground feeder given the modern office park setting, which could increase the cost and complexity of the final tap.

4. Regulatory & Zoning Analysis

• Authority Having Jurisdiction (AHJ): The City of Park Ridge is the AHJ for all zoning and building permits.
• Zoning Compatibility: The current zoning is "O - Office District." BESS is not a listed permitted or accessory use in this district. This zoning is a significant hurdle. The project cannot be considered "by-right."
• Permitting Pathway: The most likely pathway is to apply for a Special Use Permit (SUP) or a Planned Unit Development (PUD), which would require public hearings before the Planning and Zoning Commission and final approval by the City Council. This process is discretionary, lengthy (6-12 months), and carries significant entitlement risk. An alternative, more challenging path would be to petition for a zoning text amendment to allow BESS as a special use in the Office district.
• Setback Requirements: Specific BESS setbacks are likely not defined in the Park Ridge code. We would likely be subject to the standard setbacks for principal structures in the "O" district, plus any additional buffers required by the Fire Marshal based on NFPA 855 standards. Requires Verification.
• Moratorium/Restriction Risks: As an affluent suburban community without explicit BESS regulations, Park Ridge poses a high risk of facing community opposition (NIMBYism). This could lead to the denial of an SUP or even the proactive implementation of a moratorium on energy storage facilities while the city "studies the issue." Early, strategic outreach is critical.

5. IRA/ITC Incentive Analysis

• Opportunity Zone: No. The site is not located in a qualified Opportunity Zone. (0% adder)
• Energy Community: Yes. The site qualifies as an Energy Community based on the Fossil Fuel Employment (FFE) area criteria. This provides a crucial 10% ITC adder.
• Low-Income Community: No. The site does not appear to qualify for the Low-Income Community adder under the §48(e) program. (0% adder)
• Potential Cumulative ITC: The project is eligible for the base 30% ITC plus the 10% Energy Community adder, for a total of 40% ITC. Further investigation into meeting domestic content requirements could potentially add another 10%, bringing the total to 50%. The 40% is a strong baseline and a primary driver for pursuing this site despite its challenges.

6. BESS Score & Rationale