Good news for fans of fancy breads! Though the city couldn't keep Hostess from taking Wonder Bread from us earlier this year, it is, we guess, nice to know that it will still be a bargain to keep smaller bakeries around. Well, smaller bakeries that deliver to fancy restaurants, hotels and markets, at least!

To keep the decade-old, Long Island City-based bakery Pain D'Avignon inside the five boroughs, the city's Industrial Development Agency today approved more than $1 million in tax benefits to keep the bakery in town. As such it plans later this month to take over the 10,000-square-foot City Baking bakery in Long Island City. And the Pain guys, who recently opened their first retail location in the Essex Street Market, are excited. They tell Crain's that the new bakery will let them increase their capacity by a third in the next few years.

The news should also make the bakery's fancy pants clients happy. The bakery, which employs about 70 people, currently sells its loaves to a number of high-end hotels (the Waldorf Astoria, the Mandarin Oriental) and restaurants (Le Cirque, Eleven Madison Park). Not to mention upscale retailers like Citerella, Dean & DeLuca, Whole Foods and Zabar's.