The California Department of General Services (DGS) and California State University, Sacramento (CSUS) have secured a major private investment to jump-start the long-planned transformation of Capitol Mall. Meta has committed $50 million in catalyst funding to redevelop three underused state properties into a mixed-use district focused on education, housing and the arts.
The investment will fund entitlement work, hazardous materials abatement and demolition at the former Employment Development Department headquarters at 800 Capitol Mall, the EDD Solar Building at 751 N St., and the State Personnel Board Building at 801 Capitol Mall. Officials say the early-stage work will prepare the parcels for long-term development while cutting millions in annual maintenance costs currently carried by the state.
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“This exhilarating public-private partnership will stimulate economic growth and enrich the downtown community with vast educational and cultural opportunities,” said DGS Director Ana M. Lasso. “Meta’s contribution enables CSUS to fast-track this project, turning state assets into a thriving hub of academia, arts and affordable housing while helping to reimagine a key corridor of the capital city.”
Governor Gavin Newsom said the initiative fits squarely within California’s strategy of converting surplus public land into housing and community assets. In 2019, Newsom issued an executive order directing agencies to identify excess properties suitable for affordable housing and related uses, a mandate that has shaped several high-profile projects across the state.
DGS and CSUS are currently operating under an Exclusive Negotiating Agreement that allows the university to lead planning and development. The project remains in the master-planning phase, with design concepts expected to evolve over the coming year.
Preliminary plans outline an ambitious mix of uses intended to connect the university more directly with the city center. Proposals include affordable housing for students, faculty and staff, complemented by market-rate residences; a new School of Public Affairs facility adjacent to the State Capitol; a mixed-use performing arts and music venue; an artificial intelligence center supporting emerging academic programs; and a boutique hotel designed to serve campus visitors and downtown guests.
Meta founder and CEO Mark Zuckerberg said the redevelopment will help address two of California’s most pressing needs—housing and advanced workforce training—by supporting new residential units alongside modern STEM and public affairs facilities in the capital.
City leaders have long sought to activate Capitol Mall beyond traditional office hours. Supporters believe the project could bring thousands of new residents and students into the corridor, boosting local businesses and transit ridership while giving Sacramento State a prominent urban presence.
Project partners will next begin detailed design development, building assessments and the environmental review process required under the California Environmental Quality Act (CEQA). Officials say community engagement will be a central part of that process, with opportunities for public input expected later this year.
Since the governor’s 2019 executive order, DGS and the Department of Housing and Community Development have identified nearly 4,300 potential housing units across 32 projects on excess state land at various stages of development. The Capitol Mall effort is among the largest and most visible of those initiatives and could serve as a model for similar partnerships elsewhere.
Construction timelines have not yet been finalized, but planners say the Meta funding allows critical preparatory work to begin immediately, potentially shaving years off the schedule.
Originally reported by CCN staff writer in California Construction News.
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