The City Council’s Economic Development and Intergovernmental Relations Committee has approved the proposals from San Diego craft brewers Ballast Point and AleSmith to expand their business and move into larger manufacturing plants.

As per the plan, the new facilities will sit on an area between 70,000 and 100,000ft², the largest in California.

The plans also calls for reimbursement of tax revenues that will be generated by the new breweries until it is equal with the amount of municipal fees paid by the companies to move to expanded areas.

The committee expects the reimbursement to be finished in three years period and to collect around $50,000 per year in taxes, in comparison with $15,000 per year it currently collects in taxes on the property.

City Councilman Mark Kersey said he believes this is a great deal for taxpayers and for craft beer enthusiasts.

"The breweries get their fees back but only after generating new tax revenue that we would not have received otherwise, and that is the key point here," added Kersey.

Ballast Point, which currently produces beer from its 23,000ft² plant in Scripps Ranch, plans to add a new restaurant, patio and gift shop at its new 124,667ft² facility.

The expanded facility will allow it to produce 350,000 barrels of beer annually.

City officials said that Ballast Point plans to add 100 jobs, while AleSmith will add around 25 positions.

San Diego County currently has 22 breweries and 19 brew pubs, with three more breweries under construction.