Oregon Liquor Commission moving into 'state-of-the-art' $146M distribution center
The Oregon Liquor and Cannabis Commission will move its headquarters from Portland to Canby when it builds a massive new warehouse there to store and move more alcohol.
OLCC's current headquarters straddles the border between Milwaukie and Portland at 9079 S.E. McLoughlin Blvd. The agency's storage capacity stands at 228,875 square feet now, while the new warehouse in the area of South Walnut Road and Southeast First Avenue in Canby will come in at an estimated 400,000 square feet.
The agency plans to buy what's known as the Canby Baker Center property from Trammell Crow Co., a commercial real estate firm. OLCC leaders OK'd an "intent to purchase" for the property on Tuesday.
OLCC Director of Communications Mark Pettinger declined to say how much the land would cost to buy but noted the agency plans to close on the land between July and mid-December.
"We can share this information once the purchase sales agreement is signed," he said.
The new headquarters will be 30,000 square feet, downsizing from 52,730 square feet.
"Why? Lots of unusable space in the (current) circa-1950s building; the new HQ will have a more efficient design for utilizing the overall reduced space," Pettinger said.
Timelines for the project are still in the works, Pettinger said. Agency officials plan to have more info once an architect and construction manager come aboard.
"As of right now, we are targeting mid-2023 for our groundbreaking and early 2025 for project completion."
As for what will happen with OLCC's current space, that's to be determined, according to Pettinger. Still, why Canby?
"Keeping the warehouse and HQ together maintains agency culture and enables collaborative work environment to support business needs," he said. The present OLCC headquarters and warehouse are inside a more than 65-year-old facility, the warehouse needs seismic and roof upgrades, and the headquarters boiler and plumbing need a "major overhaul."
In 2019, the warehouse construction was projected to cost $62.6 million, but that has now more than doubled to $145.8 million, according to OLCC, which pointed to problems with the supply chain, domestic labor shortages, inflation, higher construction costs and a scarcity of suitable land. General obligation bonds will pay for the new warehouse and offices, repaid with OLCC proceeds, not from the general fund, according to the agency.
"The new distribution center will enable the OLCC to increase the number of products sold and distributed statewide," OLCC said in a news release. "The sale of those increased offerings is expected to generate enough money to pay back the construction bonds in less than a year."
In the release, OLCC said a study from consultancy Deloitte recommended a warehouse closer to Interstate 5 to boost how efficiently spirits are distributed to Oregon's 280 liquor stores. Oregon surveyors found four locations that fit the bill, but the Canby spot is the only one left, OLCC said. It also "happened to be the Commission's top choice," OLCC said.
Some employers have charted their return-to-office plans. "As of today, (the Department of Administrative Services) has asked all state agencies to return to work places offices by May 1, using a full-remote, hybrid and the traditional in-office model," Pettinger said. "The liquor warehouse has operated continuously during the pandemic and we will continue to pursue all three models, depending on the nature of each staff person's unique roles and responsibilities."
As for how many employees will it need to accommodate at the new location: "Our HQ office space will reflect the estimated growth of our agency and we are planning for the new location to have enough seats for existing employees plus future ones that the Legislature may see fit to give us," he said. "We will continue to work with DAS Real Estate to ensure the floor plan of the building meetings the needs of our employees and creates a workplace culture that promotes customer service and excellence."
