The Oregon Liquor and Cannabis Commission (OLCC) has begun construction on a new 347,000-sq.-ft. distilled spirits distribution center in Canby to modernize operations and enhance service. JE Dunn Construction leads the project, set to be completed by August 2026 at a cost of $87.6 million.
JE Dunn Construction photo
A rendering of the new Oregon Liquor and Cannabis Commission distribution warehouse.
The Oregon Liquor and Cannabis Commission (OLCC) broke ground on April 16, 2025, on its new 347,000-sq.-ft. distilled spirits distribution center at 165 S. Walnut St. in Canby.
The milestone celebrates the beginning of construction for the agency's new facility designed to modernize OLCC's distribution system and better serve the needs of Oregonians. The OLCC oversees access to alcohol and cannabis products in Oregon through education, regulation and distilled spirits distribution.
At the groundbreaking event, members of industry joined OLCC along with local elected leaders to each take a ceremonial shovel and help turn the earth at the site.
The lead contractor for the project, JE Dunn Construction has already begun site mobilization, including clearing, leveling and installing construction fencing in preparation for full-scale construction, which was evidenced at the site. The contract calls for a guaranteed maximum price of $87.6 million.
"Our current warehouse operates at capacity, creating logistical challenges and risking revenue opportunities for the state," said OLCC Executive Director Craig Prins. "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.'
The new warehouse will replace the current warehouse infrastructure in Milwaukie, which has been in operation since the 1950s. The new facility along the I-5 corridor will significantly expand capacity, streamline operations and improve efficiency for businesses and consumers across the state.
The building will include conveyors, pick modules and pallet racks and is designed with modular capabilities. That will enable future expansions and possibly doubling the existing capacity over the next two decades.
There will be 10 loading doors. With six doors offering instant conveyor functionality. There will be a 400-case load capability per dock door per hour and the capacity to ship 4.6 million cases annually.
"This new warehouse represents a long-overdue investment in Oregon's distilled spirits distribution system," said Dennis Doherty, commission chair. "It ensures we can meet growing consumer demand while maintaining our commitment to responsible alcohol regulation. With JE Dunn's expertise, we're confident this facility will serve Oregonians well for decades to come."
"Clackamas County is pleased that OLCC is keeping its distilled spirits distribution center here in the county," said Clackamas County Commissioner Paul Savas. "Not only will 65 jobs remain in the area, but there is the potential for growing the workforce right here in Canby."
"Breaking ground on OLCC's new liquor warehouse and distribution facility is a tremendous milestone not only for our project team but also the community," said Jeff Fisher, JE Dunn project executive. "OLCC provides many benefits to the state of Oregon beyond its core operations. This facility will only strengthen that impact. A lot of work has gone into getting to this point, and JE Dunn is proud to be part of a project that will bring lasting enhancements to the community. We look forward to continuing our partnership with OLCC and keeping the community engaged as the project progresses."
In the coming weeks, JE Dunn will finish site preparation. Substantial completion of the warehouse is expected by June 2026, with the facility fully operational by August 2026.
(All photos courtesy of JE Dunn Construction.)
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