HANOVER COUNTY, Va. (WRIC) — Virginia ABC is moving to Mechanicsville. The Alcoholic Beverage Control Authority broke ground on its new headquarters and distribution center Tuesday after a year of record sales.

The office and warehouse, which are being built on a site off of Pole Green Road, will total more than 400,000 square feet combined.

“We selected this site because of the access to transportation, 295 right there,” said Virginia ABC CEO Travis Hill.

The new distribution center with modern technology will replace the current Richmond facility on Hermitage Road. Hill said ABC has outgrown that office, which was built in the 1960s.

“We are 100 percent at capacity. We are actually renting space behind us right now to keep product, so we are 100 percent at capacity, both for product and for people, quite frankly,” said Hill.

Governor Ralph Northam said there are exciting talks to replace the current Richmond facility.

“The plans are, someday, to have a world-class stadium there that both VCU and the Squirrels can use and so they’re working through that now but I think that would be exciting for downtown Richmond,” Northam told 8News.

Northam said those plans are not definite, but stakeholders are “working in that direction.” Last year, ABC made a record-breaking $1 billion in total revenue. Half of that went to the state general fund.

“It’s well-regulated. It brings in a significant amount of revenue to the Commonwealth of Virginia, pays for a lot of the services we’re able to have like education and transportation,” Northam said.

The governor also pointed out how ABC saves taxpayers money every year.

“Since ABC was established in 1934, they’ve generated nearly $11 billion for the general fund and if we had to replace that money, it would cost every household in Virginia an additional $129 a year in taxes so this is very beneficial to all of us in Virginia,” he explained.

Construction on the new headquarters started in January and is expected to be finished before the 2021 holiday season.

Stay with 8News for a full report at 6 p.m.