Design and Construction Report staff writer
The California Department of General Services (DGS) and California State University, Sacramento (CSUS) have secured $50 million in catalyst funding from Meta to advance the redevelopment of three underutilized, state-owned buildings on Capitol Mall into a mixed-use academic and affordable housing district.
The funding will support entitlement, abatement and demolition work 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. Early work is intended to prepare the site for long-term redevelopment while reducing ongoing state maintenance costs.
“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 project aligns with the state’s broader effort to repurpose surplus public land for housing and community development. In 2019, Newsom issued an executive order directing state agencies to identify and redevelop excess properties for affordable housing and related uses.
DGS and CSUS are operating under an Exclusive Negotiating Agreement, announced earlier this year, allowing the university to pursue planning and development of the site. CSUS is currently in the master planning phase.
Preliminary concepts for the redevelopment include affordable housing for students, faculty and staff, along with market-rate housing; a new School of Public Affairs facility adjacent to the State Capitol; a mixed-use performing arts and music venue; an artificial intelligence centre supporting new academic programs; and a boutique hotel intended to serve university guests and downtown visitors.
Meta founder and CEO Mark Zuckerberg said the project will support new housing and advanced STEM and public affairs facilities in the state capital.
Next steps include initiating design development, conducting building assessments, and launching the environmental review process under the California Environmental Quality Act (CEQA).
Since the 2019 executive order, DGS and the Department of Housing and Community Development have identified a pipeline of nearly 4,300 housing units across 32 projects on excess state land at various stages of development.
