A 347,000-square-foot building designed to modernize the Oregon Liquor and Cannabis Commission‘s (OLCC) distilled spirits distribution system is being constructed in Canby.

Crews officially broke ground on “Project Meadowlark” at 165 S. Walnut St. on April 16. They’re expected to complete work in summer 2026. The guaranteed maximum price for the project is $87.6 million.

LRS Architects designed the project and JE Dunn Construction is the general contractor. The team also includes civil and structural engineer VLMK Engineering + Design and landscape architect Otten & Associates.

The new warehouse will replace the OLCC’s current one in Milwaukie, which has been in operation since the 1950s. The new facility, not far from Oregon Route 99E, will allow the agency to expand capacity, streamline operations and improve efficiency for businesses and consumers across the state, a press release states.

Prior to the official start date, JE Dunn Construction initiated site mobilization, including clearing and leveling land as well as installing construction fencing in preparation for full-scale work.

“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,” JE Dunn project executive Jeff Fisher stated in a press release. “OLCC provides many benefits to the state of Oregon beyond its core operations. This facility will only strengthen that impact.”

The modern materials handling system will include conveyors, pick modules and pallet racks, along with necessary hardware and software. The facility is designed with modular capabilities, allowing for future expansion and potentially doubling the existing capacity over the next two decades, according to OLCC.

“It was very important to us to bring a human focus to our design for the interiors of the warehouse and office space,” LRS Architects principal and senior interior designer Amalia Mohr stated in a press release. “We studied how employees would experience and move around the space to perform their work, considering how to help people in demanding jobs be productive and happy at work.”

The facility is designed as a warehouse with attached supporting offices. In addition to office space, the warehouse will feature a staff lounge, maintenance shop space, and an advanced material handling system. There will also be a large break room with an outdoor space so that staff can relax and access fresh air and daylight.

A tilt-up concrete design was chosen for cost-effectiveness and longevity. The office building will have a generous number of windows for office spaces as well as a combination of textured metal panels and fiber-cement panels to provide a varied and colorful exterior, Mohr and Paul Boundy, LRS Architects’ managing principal, shared in an email.

Construction of the warehouse is expected to finish before July 2026, allowing for full operations to take place by the end of August 2026.

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MILWAUKIE – The state-controlled liquor commission has upgraded its warehouse distribution system, which officials say should help Oregon’s supply of alcohol keep up with growing demand.

Officials with the Oregon Liquor Control Commission dedicated a $5 million conveyor system at its Distribution Center last week on a 100-degree afternoon. R.H. Brown Co. was party to a design-build contract to make high-tech improvements to the OLCC‘s lone warehouse, on an industrial stretch of Southeast McLoughlin Boulevard.

The centerpiece of the project is a conveyor system that state officials say will allow the OLCC to double its shipping capacity to 248 retail liquor stores around the state. The new bar-code-reading system allows warehouse workers to now ship from four loading doors, where one was used previously.

“This is huge for us,” OLCC spokeswoman Christine Scott said.

R.H. Brown principal Jeb Barton said challenges included programming the warehouse management software so the system would work on the first try, and performing the work without interrupting warehouse operations.

“There’s always challenges to a system like this,” he said.

Work began in March, but the firm was active several months prior programming technical equipment. About 25 workers were busy at most times, working with equipment manufacturer and longtime partner Hytrol Conveyor Company. Catco Construction of Beavercreek subcontracted to perform the mechanical installation of the mezzanine and the conveyor structure.

Based in Seattle with a Portland office, 100-year-old R.H. Brown has carved a niche in materials handling equipment. As a Hytrol representative, it installs and “integrates” its Pivot sortation software.

“Materials handling – most people don’t ever think about it, but everything you touch goes through a conveyor of some kind or is shipped,” Barton said.

Under Oregon’s unique system, the state controls the supply of spirits, and supplies independently-owned retail outlets. Money raised goes to the state general fund. In 2016, $517 million was raised through the sale of spirits in Oregon – 5 percent over the prior year.

Officials say the fastest-growing demographic is women, who are said to favor flavored vodkas and whiskeys.

More than 4,000 products were sold at Oregon’s liquor stores in 2015.

Like many public projects in the Portland area, the project was shepherded by owner’s rep Day CPM. Project Manager Doug Garland said a design-build process enables collaboration, ensuring no “finger-pointing.” The system is currently processing 1,400 cases an hour, but Garland thinks it “can do 2,400.”

“Design-build was great for this because it was a fast-paced, fully-functional warehouse, and this allowed us flexibility we wouldn’t have gotten another way,” he said.

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