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LIC Entrepreneur Space faces money worries in fourth year

LIC Entrepreneur Space faces money worries in fourth year
Photo by Bill Parry
By Bill Parry

The Queens Economic Development Corp. celebrated the third anniversary of its Entrepreneur Space while its leader feared it might be the last.

The 12,500-square-foot industrial-sized kitchen is home to a food and business incubator that has served more than 300 businesses and contributed to the local economy with over $5 million in revenue and created more than 150 new jobs.

“This is economic development in its truest sense,” QEDC President Seth Bornstein said. “But it is not yet sustainable. We need more support from the private sector or public support because we charge our client such low fees.”

The E-Space, at 36-47 37th St. in Long Island City, is open 24 hours, seven days a week. A 12-member professional staff currently guides 150 to 175 clients in starting their own small business while using the facility’s industrial-sized ovens and food preparation equipment.

E-Space became a haven for many unemployed people during the height of the recession by providing the means to mass produce and market food products to supermarkets and specialty shops and on various websites.

Clients use kitchen space and equipment and office space for $235 per eight-hour shift. There is a cheaper, overnight shift that costs $165 per eight-hour shift.

“We can’t charge these people more because of their limited means,” Bornstein said. “There may not be a fourth anniversary party and that’s the sad truth. My electric bill last month was $10,000.”

Rob MacKay, the QEDC director of marketing, said, “I’m not sure it’s as bad as Seth says, but I can say it’s always a concern. Most business incubators never make it without government subsidies.”

MacKay added that some of the machines cost upwards of $40,000, and if one of them breaks, it could be out of service for a month while they scramble to fund costly repairs.

“It would be a real shame if we couldn’t sustain E-Space. I love this place,” MacKay said.

Several of the clients, who were serving their goods to nearly 200 visitors at the anniversary party Tuesday, agreed.

Christie MacKinnon, of Manhattan, has produced her baked goods at the E-Space for seven months after investigating a half dozen other incubators.

“This place gave me the best feel,” she said while serving up her Kickys Kitchen brand cupcakes.

Duane Ward, of Brooklyn, provided samples of his many sauces from toasted vanilla cognac barbecue sauce to his island hot sauce.

“I love the support they give entrepreneurs here, from the start-up process to financial advice,” Ward said. “They’re helping me upgrade the table condiment game.”

Nicole Townsend, of Harlem, produces her healthy line of Spoil Me Rotten dog biscuits at the E-Space.

“I started making them for my own dog, but my kitchen was too small. I started here two years ago and now I market the biscuits to independent pet shops throughout the city.”

Angela Beauman, of Deer Park, L.I., has a unique story that began with a terrible car crash.

“My back was destroyed and I had a pain management doctor from Argentina. I started making cookies called alfajores. They eat 6 million of them a day in Argentina. I’d give him cookies and he’d give me a shot and critique the cookies,” Beauman said.

Over time she perfected her recipe and now sells her Buenos Angie’s alfajores online and to several Manhattan coffee shops.

She found out about E-Space from a friend two years ago.

“They go out of their way here from a financial adviser to business classes,” she said. “ They really want to help you succeed.”

Reach reporter Bill Parry by e-mail at bparry@cnglocal.com or by phone at 718-260-4538.