Oregon's alcohol regulators are moving forward with plans for a new distribution center for distilled spirits.

Earlier this week, officials announced that the Oregon Liquor and Cannabis Commission (OLCC) and the state Department of Administrative Services have agreed to pay JE Dunn Construction Company up to $87.6 million for the Canby facility. The 347,000-square-foot warehouse project has also received land use approval from the city’s Planning Commission.

At a meeting on Wednesday, OLCC Executive Director Craig Prins stated that the “much needed upgrade greatly expands our ability to serve Oregonians.” He emphasized, “We can better oversee access to alcohol products while protecting public health and supporting responsible businesses,” in his remarks to the Committee on Economic Development, Small Business and Trade.

The OLCC highlighted that the need for a new distribution center has been recognized since the Eisenhower Administration. By late 2022, the commission reported its warehouse was at 98% capacity. This shortage was initially attributed to increased consumer demand for premium spirits during the COVID-19 pandemic.

However, this trend has begun to shift. Earlier this year, officials revealed that the state’s alcohol revenue forecast for 2023-2025 had dropped from $705.7 million to $573.4 million. OLCC spokesperson Mark Pettinger explained that the change was due to factors such as Oregon's slight increase in alcohol consumption and slower population growth.

Despite this, the OLCC reported that its current facilities are still struggling with capacity issues, which forces products to be stored across two separate warehouses located half a mile apart, reducing operational efficiency.

The new Canby facility is expected to help the OLCC double the number of trucks serviced at any given time. JE Dunn Construction is set to break ground on the project next spring, with the facility expected to be completed by summer 2026.