Zingerman's lands brownfield tax credit to support $6.7 million expansion in Ann Arbor

By Nathan Bomey Business news director

Posted on Tue, Oct 26, 2010 : 10 a.m.

Zingerman's Deli is getting tax relief from the Michigan Economic Development Corp. to support its $6.7 million expansion in Ann Arbor.

The gourmet food destination is expected to receive approval this morning from MEDC's Michigan Economic Growth Authority board for a Brownfield Michigan Business Tax credit worth $1.1 million.

A three-dimensional model by Quinn Evans Architects shows the addition of a large rectangular building in relation to the existing deli building, annex building and next door building.

Ryan J. Stanton | AnnArbor.com

The tax credit reduces the cost of the Zingerman's expansion, which involves construction of a two-story, 10,340-square-foot addition that would be connected to the restaurant's 5,107-square-foot deli building via a glass atrium. Zingerman's last month won approval from the Ann Arbor Historic District Commission to raze a fire-damaged house to make way for the expansion.

Zingerman's, which employs about 180 workers, has said it plans to add 65 jobs to staff its additional capacity after the expansion is complete. The new space will include a kitchen, more dining room, offices, retail space and storage areas.

“Zingerman’s is an Ann Arbor institution, and it’s exciting to watch it grow here in the region,” said Michael Finney, CEO of economic development group Ann Arbor SPARK, in a statement.

Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.