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Sacramento State downtown expansion gains momentum with new private funding: Bringing back life to the city center

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Sacramento, California – Meta has promised $50 million to help build Sacramento State University’s planned Capital Campus. This would change a significant portion of downtown Sacramento. State leaders said that the money is a big step forward for a public-private collaboration to make more room for higher education and bring new life to the city’s downtown area.

The main goal of the project is to turn three state-owned sites along Capitol Mall that aren’t being used extensively into a mixed-use district that will be used for living, learning, and innovation. The targeted sites include the old 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.

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Officials say that the redevelopment is a smart way to make use of existing government resources to satisfy the requirements of more students, deal with housing shortages, and help downtown recover from the disruptions caused by the pandemic.

The Capital Campus is seen by university authorities as a long-term solution to the lack of room at Sacramento State’s main campus, which currently houses more than 31,000 students. The institution hopes that moving into the downtown area will help it recruit students from all over the country and abroad while also strengthening ties between education, government, and business.

Business groups also point to changing work habits that have led to fewer people going to the office every day in many city centers. They say that a regular flow of residents and students may bring back activity throughout the week.

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The first ideas for the development include a mix of affordable and market-rate housing for students, faculty, and staff, as well as new academic and cultural buildings. There are plans for a School of Public Affairs near the State Capitol, a place for performing arts and music, and an Artificial Intelligence Center that would be connected to a proposed bachelor’s degree in AI Business Management.

There is also a plan for a small hotel to house guests and academic partners. Leaders in economic development argue that putting housing, education, and innovation all in one place is in line with national trends that aim to recruit talent and make regions more competitive.

State officials point out that Meta’s support speeds up progress after a previous attempt to rehabilitate the area failed when a private developer pulled out. The next steps will include design work, structural evaluations, and an environmental review under the California Environmental Quality Act.

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Supporters say that the effort might serve as a model for municipalities that want to bring life back to their downtown areas by expanding universities, repurposing public buildings, and forming collaborations that connect workforce development with new businesses like artificial intelligence.

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