Zup’s Food Market in Ely completed a business expansion project that transitioned their operations from its existing building into a larger redeveloped building within the Ely main street corridor, less than one mile down the road. The project was supported by $516,795 in Community Development grants from Iron Range Resources & Rehabilitation to the city of Ely that helped pay for sitework, foundation reinforcement and interior demolition. Total project investment was over $7 million.

Zup’s purchased the vacant Shopko building, expanded the footprint and transformed it into a 36,000-square-foot grocery store featuring groceries, dry goods, a fresh deli, catering service, butcher shop, apparels, a liquor store and pharmacy. Zup’s popular Old World sausage-making capacity will more than double in the new location. The 105-year-old northeastern Minnesota grocery enterprise officially opened its new doors in Ely last October. A ribbon-cutting ceremony is scheduled for May.

Zup’s also purchased the Northland Market building, the city’s only other grocery store and sold it, along with the prior Zup’s site. Both buildings are now under redevelopment. Former Northland Market owner Donna Richards and all of her employees will be part of the new Zup’s operations, with some of their specialty items available for sale at the new location.

“The people and city of Ely benefited immensely from this business relocation and expansion. We’ve now got a great retail outlet with a large variety of products and services,” said Harold Langowski, Ely’s clerk-treasurer. “Plus, both the Northland and former Zup’s buildings are now sold and under redevelopment which created new investment into the downtown area.”

Zup’s is a family-owned business originally established in Ely in 1916 by John Zupancich. “Grandpa John” operated the business with his seven sons, and it quickly became popular for its wide variety of products and Old-World sausages. Today Zup’s has four other locations (in addition to Ely) across the region including Cook, Babbitt, Tower and Silver Bay. All are owned by Zupancich Brothers, Inc. and operated by the founder’s grandsons and great grandsons.

“Our family and staff are deeply dedicated to the community of Ely, and to northeastern Minnesota,” said Jim Zupancich, co-owner of Zupancich Brothers, Inc. “Our new store offers quality food at good prices, and we’ve expanded our offerings to dry goods, apparel and medicines. We are very thankful to everyone who worked to make this project possible, including our employees and our loyal customers who shop with us each week.”

About 90 people are employed in the new facility, a combined workforce from Zup’s and Northland Market. In addition to serving local residents year-round, the new store is a key shopping destination for visitors to Ely and those on their way to the Boundary Waters Canoe Area Wilderness.

“Zup’s is a vital part of the region’s economy and supplier of essential goods. It provides jobs and tax revenue to the region’s communities,” said Commissioner Mark Phillips, Iron Range Resources & Rehabilitation. “Our agency’s infrastructure investment supported a solid business that has been committed to northeastern Minnesota for over a century.”

For Community Development grant information email Chris Ismil or call him at 218-735-3010.

Nashwauk Market & Iron Range Meats owners Ben DeNucci and Tony Fragnito utilized a Business Energy Retrofit (BER) grant to help replace the store’s failing roof system. The BER grant assisted with energy efficient layers of insulation, a new membrane and flashing. Iron Range Resources & Rehabilitation also provided an $18,198 Commercial Redevelopment grant to the city of Nashwauk to help pay for the demolition of the old roof.

The original roof had outlasted its useful life and caused significant water leaking. Holes in the steel decking were visible and had compromised the insulation. As a result, grocery products, equipment and interior building materials were at risk of damage.

Pictured above are Owner Tony Fragnito, United Food and Commercial Workers International Union (UFCW) Representative Tom Cvar and Owner Ben DeNucci.

“Nashwauk Market, its owners and employees make vital products accessible within reasonable driving distance for area residents,” said Commissioner Mark Phillips, Iron Range Resources & Rehabilitation. “Our agency’s energy efficiency and infrastructure investments supported an essential business in northeastern Minnesota.”

Since BER’s inception in 2013, over 450 grants have been awarded to help small businesses with energy efficiency upgrades that can result in reduced utility bills, improved building aesthetics and increased building life. The program is funded by Iron Range Resources & Rehabilitation and administered through a partnership with Arrowhead Economic Opportunity Agency (AEOA). To learn more email Scott Zahorik at AEOA or call him at 218-748-7331. For Commercial Redevelopment grant information email Chris Ismil or call him at 218-735-3010.

The city of Ironton replaced the outdoor lighting throughout its downtown commercial business district. The lighting project coincided with the reconstruction of Highway 210 which runs through the business district. Iron Range Resources & Rehabilitation supported the project with a $50,000 Downtown Streetscapes grant.

Ironton has been redeveloping its downtown area over the past five years which has resulted in the rehabilitation of 10 downtown commercial buildings.

According to the city, the new lighting supports its comprehensive plan that was developed several years ago by community members, business owners and the city council. All of the improvements to the downtown area, from the lighting to the roadway to the building rehab, have had a significant and positive impact to the business district and have created an increase in tax base and tax values.

Other project partners included Minnesota Department of Transportation and the city of Ironton.

Email Whitney Ridlon or call her at 218-735-3004 for Downtown Streetscapes grant information. Iron Range Resources & Rehabilitation’s grants are funded through taxes paid by Minnesota’s mining industry.

The city of Mountain Iron was awarded a Community Infrastructure grant to improve its water system in order to continue providing clean safe drinking water and fire protection. The project entailed rehabilitating a 400,000-gallon water tower, installing a new water filtering system to replace a 40-year old system, drilling a new well to mitigate potential future contamination and carrying out maintenance on current wells. “One of our agency’s goals is to help communities improve, replace and modernize their foundational assets such as water systems. The agency’s investment into Mountain Iron helps the city continue providing essential water services to its residents and businesses.” – Commissioner Mark Phillips, Iron Range Resources and Rehabilitation

The city of Two Harbors was awarded a Development Infrastructure grant to help pay for site preparation related to water, sewer, storm sewer and electrical that will support construction of Lake Superior Dental. The new 4,500-square-foot dental office will have eight treatment rooms and expanded services to perform specialty care. “Our agency was pleased to support this project in which a private business is investing in one of the region’s communities. Dental and health care clinics can have a positive economic impact in the community in which they are located. They employ people who impact local spending, and the facility itself can purchase from other local businesses and generate tax revenues.” – Commissioner Mark Phillips

Grant amounts vary and require a 1:1 match. Cities, townships, counties, tribal nations and nonprofit fire departments located with the agency’s service area are eligible. Multi-organization collaboration is encouraged.

Does your community have an upcoming residential, business or public facility development project that needs new or updated infrastructure to support it? Learn more about Community and Development Infrastructure grants or email Chris Ismil or call him at 218-735-3010.

Iron Range Resources & Rehabilitation funds grants through taxes paid by Minnesota’s mining industry.

Iron Range Resources & Rehabilitation invests resources to foster vibrant growth and economic prosperity in northeastern Minnesota. The Culture & Tourism grant will accept applications March 1-31, 2022. The grant assists cities, townships, Tribal Nations and nonprofits by supporting strong arts, culture, history and recreational activities that enhance the quality of life and economy.

Past project examples include:

• Splash pad in three community parks: Aurora, Deerwood, Hibbing.
• Veterans history project: Itasca County.
• Wheel park: Ely.
• Native American cultural programming at sled dog marathon: Grand Marais/North Shore.
• Capital improvements to Finnish homestead museum: Embarrass.

Full applications should be submitted with all required documentation no later than March 31 in order to be considered for a grant. Learn more about the Culture & Tourism grant guidelines. Iron Range Resources & Rehabilitation funds its grants programs through taxes paid by Minnesota’s mining industry.