⚡ 87 SHOEMAKER LN

MEMORANDUM

TO: Sunland America Corp. Development Committee

FROM: Senior BESS Site Evaluation Analyst

DATE: October 26, 2023

SUBJECT: Comprehensive Site Diligence Analysis for "Project Fairton" (87 Shoemaker Ln, Cumberland, NJ)

This report provides a comprehensive due diligence analysis for the property located at 87 Shoemaker Lane in Fairfield Township, Cumberland County, New Jersey. The analysis evaluates the site's suitability for a distribution or utility-scale Battery Energy Storage System (BESS) project, with a focus on actionable insights and risk mitigation.

1. Site Access & Topography

Road Access & Equipment Delivery: The site is located on Shoemaker Lane, a local, two-lane road. A preliminary desktop review indicates this road is paved and appears to be in reasonable condition. It connects directly to Route 49, a major state highway, approximately 1.5 miles away, which provides excellent regional access for equipment delivery. However, the final turn onto Shoemaker Lane and the entrance to the parcel itself must be physically inspected to confirm sufficient turning radii for lowboy trailers carrying battery containers and the main power transformer. The road appears capable of supporting heavy truck traffic, but a formal structural assessment may be required by the AHJ.

Terrain & Buildability: The property is in the Southern New Jersey coastal plain, a region characterized by minimal topographic relief. The current land use as an irrigated or dry farm strongly suggests the site is flat, cleared, and well-drained, which is ideal for BESS construction. This significantly reduces earthwork and civil engineering costs. The high ratio of buildable acres (14.34 out of 15.52) further supports this assessment, indicating minimal unbuildable areas.

Heavy Equipment Feasibility: Access for critical heavy equipment like a 150-ton crane, transformers, and containerized BESS units appears feasible given the proximity to state highways and the likely flat nature of the site. The primary constraint will be the final access point from Shoemaker Lane onto the property, which will require a properly engineered construction entrance.

Easement Concerns: Given the site's immediate proximity (0.031 miles) to the FAIRTON substation, the existence of one or more utility access and transmission easements is virtually certain. A full ALTA survey and title report are required to identify the exact location and restrictions of these easements, as they will directly impact the final site layout and available buildable footprint.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is listed as "Unknown." This is a critical data gap and a high-priority diligence item. Development within a Special Flood Hazard Area (SFHA) would trigger significant design changes, such as elevating all equipment above the Base Flood Elevation, leading to substantial cost increases and potential permitting challenges. Requires Verification via FEMA Flood Map Service Center immediately.

Wetlands: The presence of wetlands is "Unknown." Southern New Jersey has extensive wetlands, and agricultural land often contains or is adjacent to regulated areas. The New Jersey Department of Environmental Protection (NJDEP) has some of the strictest wetland regulations in the country, with significant buffer requirements (up to 150 feet). A desktop screening using the National Wetlands Inventory (NWI) is the first step, followed by a mandatory field-based wetland delineation by a certified professional. Any presence of wetlands could materially impact the site layout and buildable area.

Critical Habitat / Endangered Species: The data indicates no critical habitat or protected areas on site, which is a significant positive. However, a desktop review should still be conducted to screen for state-listed species of concern, as NJDEP may require specific surveys or mitigation measures.

Brownfield/Superfund Status: The presence of two superfund/brownfield sites within a two-mile radius presents both a risk and a potential opportunity. The risk is potential contaminant migration onto the subject property, which must be assessed via a Phase I Environmental Site Assessment (ESA). The opportunity is the 10% ITC "Brownfield" adder. If the Phase I ESA identifies a Recognized Environmental Condition (REC) and a Phase II confirms contamination, the site itself could potentially qualify as a brownfield, unlocking a valuable incentive. This requires careful investigation.

Pipeline Proximity: The absence of major pipelines within a three-mile radius is a major safety and design advantage, eliminating concerns related to pipeline setbacks, explosion risks, and coordination with pipeline operators.

3. Grid Infrastructure & Interconnection

Substation & POI: The site's premier attribute is its location just 0.031 miles (approximately 165 feet) from the FAIRTON substation. This is an exceptionally rare and valuable characteristic, as it nearly eliminates the need for a costly and contentious gen-tie line. The substation's maximum voltage is 69 kV, a robust sub-transmission voltage ideal for a utility-scale BESS project.

Interconnection Voltage & Cost: The recommended interconnection path is a direct connection at 69 kV into a new bay at the FAIRTON substation. This avoids potential capacity limitations on lower-voltage distribution feeders. While the gen-tie construction cost will be minimal, the primary interconnection expense will be the utility-side upgrades within the substation (e.g., a new 69 kV breaker, protection and control systems, metering). The estimated interconnection cost is likely in the $750,000 to $2,000,000 range, which is on the