OLCC breaks ground on new, 347,000-square-foot Canby warehouse

PORTLAND, Ore. (KOIN) — Construction crews have finally begun work on the Oregon Liquor Cannabis Commission’s new, 347,000-square-foot warehouse.

The agency and lead contractors with JE Dunn Construction broke ground on the facility on Wednesday. The distribution center is expected to help meet the demand for distilled spirits.

According to Executive Director Craig Prins, the current warehouse has been operating at full capacity and therefore affecting the commission’s ability to generate revenue.

“This new facility, with its advanced material handling systems and expanded footprint, will allow us to better serve Oregon businesses and consumers efficiently and responsibly,” Prins said.

OLCC reported that the warehouse will replace the pre-existing space that has been opened for operations in Milwaukie since the 1950s. Officials previously planned on constructing a new headquarters in addition to the warehouse, but it decided to relocate its headquarters to a Portland office in early 2024 after noting a slip in overall alcohol revenue.

The agency and Oregon’s Department of Administrative Services agreed to pay the contractors a maximum of $87.6 million for the new facility last December. OLCC Chair Dennis Doherty said the purchase is a “long-overdue investment.”

“It ensures we can meet growing consumer demand while maintaining our commitment to responsible alcohol regulation,” Doherty said. “With JE Dunn’s expertise, we’re confident this facility will serve Oregonians well for decades to come.”

Clackamas County Commissioner Paul Savas added that the distribution center also has the potential to increase Canby’s workforce, in addition to the 65 jobs it has already provided.

JE Dunn Construction is expected to finish preparing the site sometime this month. The facility is projected to be partially complete by June 2026, and fully operational two months later.