Advancing Downtown Revitalization and Talent Development
SACRAMENTO, Calif. — A major public-private investment aimed at revitalizing downtown Sacramento and expanding higher-education capacity is moving forward as Meta commits $50 million to support the development of Sacramento State University’s planned Capital Campus in the city’s urban core.
Announced by state leaders, the investment will help transform three underutilized, state-owned buildings along Capitol Mall into a mixed-use academic, housing and innovation district designed to serve students, faculty and staff while injecting new economic activity into downtown Sacramento.
The redevelopment targets 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. The initiative represents a strategic reuse of state assets to address higher-education growth, housing demand and downtown recovery in a post-pandemic environment.
Catalyzing Downtown Economic Activity
Sacramento State leaders view the Capital Campus as a long-term solution to campus capacity constraints and a catalyst for urban revitalization. With enrollment exceeding 31,000 students and limited room for expansion on its main campus, the university is leveraging downtown locations to accommodate growth while strengthening ties between academia, government and industry.
University officials say the project will help attract students globally while reinforcing Sacramento’s role as a center for public policy, innovation and workforce development.
Downtown business advocates note that hybrid work patterns have reduced daily foot traffic in many urban cores nationwide. The Capital Campus model aims to restore consistent activity by introducing student housing, classrooms and cultural venues that activate the area beyond traditional office hours.
Mixed-Use Development with Workforce Implications
Early plans for the Capital Campus include:
- Affordable and market-rate housing for students, faculty and staff
- A new School of Public Affairs located near the State Capitol
- A performing arts and music venue
- An Artificial Intelligence Center supporting a new bachelor’s degree in AI Business Management
- A boutique hotel to serve visitors and academic partners
Economic development leaders say the integration of housing, education and innovation space aligns with national trends in creating live-learn-work districts that attract young talent and support regional competitiveness.
Meta’s investment is positioned as both a community development initiative and a workforce pipeline strategy, helping prepare the next generation of leaders and innovators while strengthening the regional economy.
Public-Private Partnership Driving Redevelopment
State officials emphasize that the funding accelerates the timeline for converting surplus government buildings into productive community assets. The project follows a previous redevelopment attempt that stalled when a private developer withdrew.
Next steps include design development, building assessments and environmental review under the California Environmental Quality Act (CEQA).
A Model for Urban Campus Expansion
For economic developers, the Sacramento State Capital Campus illustrates how public-private partnerships, adaptive reuse of government properties and university expansion can work together to revitalize downtown districts, address housing shortages and support workforce development in high-growth sectors such as artificial intelligence.
As cities across the country rethink downtown strategies in response to remote work trends, Sacramento’s approach may offer a replicable model for blending education, housing and innovation into a unified economic development strategy.
