Meta commits $50 million for early work tied to proposed Sacramento State Capitol Mall campus
A long-stalled effort to redevelop state-owned buildings along Capitol Mall took a step toward early planning this week. The shift follows a $50 million commitment from Meta to support predevelopment work tied to a proposed Sacramento State expansion downtown.
Sacramento State announced the investment, saying the funding will support entitlement work, environmental review, abatement, and demolition for three underutilized state buildings in the Capitol Mall corridor.
The buildings include the former Employment Development Department headquarters at 800 Capitol Mall, the EDD Solar Building at 751 N Street, and the State Personnel Board Building at 801 Capitol Mall. All three properties are owned by the state and have been identified as surplus or underused facilities.
Video showing the three state-owned buildings along Capitol Mall.
The California Department of General Services and Sacramento State University are operating under an exclusive negotiating agreement that allows the university to evaluate a mixed-use redevelopment concept for the site. State officials said Meta’s funding will not finance construction but will instead cover predevelopment costs, including demolition and site preparation, required before redevelopment options can proceed.
Proposed uses under consideration include affordable and market-rate housing, a new School of Public Affairs, a performing arts venue, an artificial intelligence center tied to a new academic program, and a boutique hotel serving university-related visitors and downtown guests.
According to a Sacramento State social media post announcing the funding, the university described the concept as a 2 million to 5 million square foot mixed-use downtown development that could form a new Sacramento State capital campus. The post did not provide a breakdown of uses, unit counts, or a construction timeline, and the university has not released a finalized program or site plan.
The project falls under a statewide initiative launched by Newsom to repurpose excess state property for housing.
The Capitol Mall buildings were previously targeted for residential conversion. In 2023, the state awarded a contract to redevelop the sites into housing, but that effort stalled after the selected developer withdrew following a dispute over predevelopment funding, leaving the future of the properties unresolved.
Next steps for the Capitol Mall sites include design development, site testing, and environmental review under the California Environmental Quality Act. Any redevelopment would require additional approvals before construction could begin.
