⚡ 91 FREDETTE ST

MEMORANDUM

TO: Sunland America Corp. Development Team
FROM: Senior BESS Site Evaluation Analyst
DATE: October 26, 2023
SUBJECT: Comprehensive Site Diligence Analysis for 91 Fredette St, Gardner, MA (APN: M22-11-7)

This report provides a comprehensive due diligence analysis for a potential distribution-scale Battery Energy Storage System (BESS) project at 91 Fredette Street in Gardner, Worcester County, Massachusetts. The 2.12-acre parcel presents a compelling opportunity due to its favorable industrial zoning and, most critically, an on-site Point of Interconnection (POI). While several key diligence items remain, the initial data suggests this site warrants aggressive pursuit.

1. Site Access & Topography

• Road Access & Feasibility: The property has direct frontage on Fredette Street, which is a public, paved road within an established industrial park. Satellite imagery review confirms the road is sufficiently wide and appears capable of handling heavy truck traffic. The existing land use as a "Truck Terminal" strongly indicates that the site and surrounding road network are already designed for semi-trucks and heavy-duty vehicles, which is ideal for our purposes.
• Terrain Characteristics: Located in central Massachusetts, the general area has rolling hills. However, this specific parcel appears to have been previously graded for industrial use and is largely flat and cleared. This is consistent with the "Good" buildability rating provided. A formal topographic survey will be required for detailed engineering, but significant earthwork is not anticipated, which will help control civil construction costs.
• Heavy Equipment Access: Access for critical heavy equipment, including a mobile crane, step-up transformer, and multiple BESS container units, appears excellent. The entrance from Fredette Street is wide, and there is ample room on-site for staging and maneuvering during construction.
• Easement Concerns: The "POI Onsite" designation implies an existing utility easement is already in place. A full title commitment must be ordered to identify the precise location and restrictions of this and any other easements (e.g., access, drainage) that could impact the final site layout. We must ensure our equipment placement does not violate the terms of these easements.

2. Environmental Constraints

• FEMA Flood Zone: The FEMA flood zone status is currently listed as "Unknown." This is a critical data gap. A preliminary desktop review using the FEMA Flood Map Service Center suggests the parcel is located in Zone X, an area of minimal flood hazard. Action Item: This must be formally verified. Siting in Zone X would be ideal, as it avoids costly mitigation measures like elevating equipment.
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• Wetlands: The presence of wetlands is "Unknown." This poses a moderate risk. A desktop review of the National Wetlands Inventory (NWI) must be conducted immediately. Given the site's industrial history, the likelihood of significant jurisdictional wetlands may be low, but any presence could trigger substantial setbacks (e.g., 50-100 feet in MA) and reduce the buildable area. A formal wetland delineation will be required if the desktop screen indicates potential risk.
• Critical Habitat / Species: The data indicates no critical habitat or protected areas on or immediately adjacent to the site, which is a significant de-risking factor. A standard U.S. Fish & Wildlife Service IPaC report should still be run to document the lack of risk for the permitting record.
• Brownfield/Superfund Status: The presence of 13 known brownfield or superfund sites within a two-mile radius is a key finding. This presents both a risk and a major opportunity.
  • Risk: The subject parcel itself could have historical contamination from its use as a truck terminal (e.g., from fuel storage, vehicle maintenance). A Phase I Environmental Site Assessment (ESA) is non-negotiable and must be commissioned immediately.
  • Opportunity: This proximity may allow the project to qualify for the 10% IRA Brownfield ITC adder. To qualify, the site itself must meet the federal definition of a brownfield. The Phase I ESA is the first step in making this determination. Securing this adder would significantly improve project economics.
• Pipeline Proximity: No major gas pipelines are located within three miles, eliminating risks associated with pipeline setbacks and explosion hazards.

3. Grid Infrastructure & Interconnection

• Substation & Capacity: The nearest substation is Crystal Lake, 1.7 miles away, with a maximum voltage of 69 kV. This distance is reasonable. The substation's 69 kV bus indicates it steps down to distribution voltages, which is where we would interconnect. The interconnecting utility is National Grid. Requires Verification: We must request a pre-application report from National Grid to get an initial, non-binding assessment of available capacity on the local 13.8 kV circuit and identify any potential thermal or protection-related upgrade costs at the substation.
• Interconnection Voltage & POI: The data confirms a 13.8 kV distribution-level interconnection with the POI located "Onsite." This is an ideal scenario. It eliminates the need for a costly line extension, which is often one of the largest and most unpredictable project expenses. The interconnection will likely involve a simple tap to the existing overhead 3-phase line running along Fredette Street.
• Estimated Cost & Timeline: With an on-site POI, interconnection costs should be on the lower end of the typical range. We estimate costs between $750,000 and $2,000,000, primarily for utility-side