Local brewery Beyond the Pale got the thumbs up from councillors on Wednesday to move into the City Centre complex, which is located in a large lot bounded by Albert and Somerset Streets.
The warehouse-style building has individual units and other tenants include the popular Art-is-In Bakery.
Beyond the Pale has outgrown its original space in Hintonburg and the new brewery will be capped at 800 square metres.
By a vote of 17 to 6, city council closed the door on increasing the height of a new building proposed near Wellington Street and Island Park Drive.
At previous meetings, many residents in the neighbourhood urged councillors to approve the 12-storey proposal, in part because of the eyesore that is the current site. However, the Wellington Village Community Association opposed it.
Mizrahi Developments asked for the 12-storey building to help offset what it says was expensive soil clean-up costs.
But a majority of councillors argued that height doesn't fit within the newly adopted planning policies that call for a limit of nine, and it could set a bad precedent wherein other developers would ask for taller buildings.
The developer has previously stated he would take his case to the Ontario Municipal Board in the hopes of getting approval.