Sacramento State Downtown Economic Development Project

A Transformational Economic Engine for Downtown Sacramento

Sacramento State is advancing a first-of-its-kind downtown economic development initiative within the California State University system: a transformative 2 to 5 million square foot mixed-use development located steps from the California State Capitol. This landmark project will establish a new downtown State Capital Campus, integrating public and private uses that support education, housing, workforce development, innovation, hospitality and cultural vitality while serving the needs of downtown Sacramento and the broader region.

This development project will create a dynamic and future-focused downtown campus that strengthens Sacramento State’s statewide impact, accelerates downtown economic activity, and establishes a national model for public-private university-led economic development in the heart of the capital city.

See Announcement

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Message from Sacramento State

President Luke Wood and Chief of External Relations and Interim Sr. AVP for University Communications Michelle Willard

From the Community

Sacramento State’s downtown campus represents exactly the kind of smart, forward-looking investment the region needs. Building housing, especially student housing, in downtown Sacramento will attract educated, diverse young people to our urban core, further strengthening our community and Central City economy. Creating a more affordable urban core, coupled with increased accessibility to higher education, will benefit not only our students but also our long-term residents, sports teams, small businesses, and our identity as a region. To truly effectuate a thriving downtown, developing more affordable housing, spaces of higher education, and intentional community spaces are vital. Sacramento State’s downtown campus is significant progress towards investing in our downtown region and continuing Sacramento’s identity as a thriving and diverse community for everyone.

Senate Majority Leader Angelique Ashby

About the Project

The State of California and the Department of General Services (DGS), in partnership with Sacramento State, secured a substantial donation from a private sector industry partner towards starting the development project. The donation of funds will go to DGS to demo and abate underutilized and obsolete state-owned buildings and reimagine the site as a vibrant, modern urban campus.
Last year, DGS and Sacramento State announced they are operating under an Exclusive Negotiating Agreement (ENA), providing the University with one year of exclusivity to negotiate a land transfer.
The project will serve students, faculty, staff, and the community while advancing Sacramento State’s mission as a flagship university deeply connected to California’s civic, economic, and policy leadership. This development is envisioned as a transformational economic engine for downtown Sacramento, supported by business leaders, elected officials, and community stakeholders who recognize its potential to catalyze long-term growth and revitalization.

From the Community

This vision for a mixed-use, university village on Capitol Mall presents a unique opportunity to elevate California's next generation of leaders and to play a pivotal role in workforce development, infill housing production, and in strengthening the regional economy at a prime, mobility-rich location which will complement the existing mix of social, economic, and cultural amenities in Downtown Sacramento. The announcement of catalyst funding from Meta for the Downtown Sacramento State University Center represents a significant milestone in our collaborative efforts with the State of California, Sacramento State University, the City of Sacramento, California Area Development Authority, and the private sector to engineer opportunity and vitality to an underutilized site at the gateway to California’s State Capitol.

Michael Ault, Executive Director, Downtown Sacramento Partnership

Potential Uses

While the University is entering the master planning phase in early 2026, early concepts include a balanced mix of academic, residential, innovation, and hospitality uses, including:

Student housing: Housing solutions that support downtown revitalization, featuring market-rate housing alongside affordable housing for Sacramento State students, faculty, and staff.
A new state-of-the-art School of Public Affairs, strategically located adjacent to the State Capitol to serve the world’s fourth-largest economy. The school will connect education, public policy, innovation, and leadership, building on Sacramento State’s nationally recognized State Capitol Fellows Program.
A mixed-use performing arts and music venue designed to serve both the campus and the broader community, enhancing downtown’s cultural and creative economy.
An Artificial Intelligence Center supporting a new bachelor’s degree in AI Business Management, positioning Sacramento State at the forefront of workforce development for industries of the future.
A boutique hotel to accommodate visiting students, families, research partners, and university guests, while contributing to the much-needed hotel capacity to strengthen downtown tourism and business travel.

From the Community

This project is a transformational moment for Sacramento State, for our downtown and for the entire Greater Sacramento region. Establishing the School of Public Affairs in the heart of our urban core strengthens Sacramento’s role as a center for public leadership and innovation, accelerates the revitalization of downtown and creates a direct pipeline of talent for public service, policy and the industries shaping our future. We are grateful to Meta for its leadership and commitment to corporate responsibility by investing in education and workforce development. This is the kind of bold, forward-looking investment that changes a university’s trajectory, strengthens our city and gives students access to world-class opportunities right here at home.

Barry Broome, President & CEO, Greater Sacramento Economic Council 