Feeding the Commercial medium voltage substation

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Alangi1361

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California
Which one is a better practice in order to provide power to the substation load(Xmer fans, lighting, outlets) in a commercial building?
1- Installing a single phase Xmer, connected to the medium voltage bus, in switchgear, and feeding the loads though a panel connected to this Xmer.

2- Tapping from a nearby distribution panel( any building near the switchgear) and feeding the load.

Personally, I prefer "1" approach since if there is a failure on that building and dist. panel, and workers want to work on the substation they will have power whereas in approach 2 , the substation will be left with no power.
 
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