Doesn't make much sense to me - maybe they are only restricting the use of raw eggs in royal icing? Meringue powder shouldn't pose much, if any, health risk. Anyway, the good news about CA is that they seem to have more incubator kitchens than most other areas of the country. Perhaps you can find such a shared space arrangement that would be less costly than $400/month? Though, to be honest, my lease starting out was a lot higher than that - and I managed okay, though it was a full-time business for me.