Gov. Gavin Newsom announced Thursday that Meta, which is based in Menlo Park, was providing $50 million in funding to transform three state buildings on Capitol Mall into mixed-use facilities for California State University, Sacramento faculty and students.
“This project will create new housing for students and professionals and support state-of-the-art STEM facilities, including a new School of Public Affairs and dedicated AI Center,” Meta CEO Mark Zuckerberg said in a statement. “I believe these investments will help strengthen our communities and support the next generation of leaders and innovators.”
Last year, the state provided CSU Sacramento with exclusive rights to evaluate these properties and explore opportunities to build academic facilities and housing. The partnership with Meta will fund the abatement and demolition work needed to begin the process of building new housing and other facilities.
Previously, the state unsuccessfully tried to contract a private developer to transform these buildings — the Employment Development Department headquarters building at 800 Capitol Mall; the EDD Solar Building at 751 N Street; and the State Personnel Board Building at 801 Capitol Mall — into nearly 700 residential units. In 2024, St. Louis-based developer McCormack Baron Salazar withdrew from an arrangement after California did not provide funding for an adaptive reuse study.
Since he first came into office seven years ago, Newsom has pushed to convert excess state property into housing. As of last November, his administration touted 32 projects in “various phases of development” that would eventually result in nearly 4,300 housing units.
University President Luke Wood said last year that CSU Sacramento had plans to open a downtown campus, which would help the university generate revenue by hosting events and providing office space — moves that could help offset budget cuts. Thursday’s announcement noted that there are plans to build a mixed‑use performing arts space and boutique hotel in these facilities.
On Thursday, Wood added that these new facilities would position CSU Sacramento as a “flagship university, one that embodies economic vitality, expands access to opportunity, and integrates academic excellence with innovation, housing, and community in the heart of California’s capital.”
The university will soon issue a request for proposals for a master plan for the project, said Michelle Willard, chief of external relations and interim senior associate vice president for university communications.
The $50 million investment will “jumpstart” the initial work for the project, but the ultimate price tag will be higher. “We’re extremely grateful,” Willard said.
“We’re really excited to do something catalytic for our community and the Sacramento region. It’s what this community deserves and needs.”
Sacramento Mayor Kevin McCarty said the cash infusion would help bring life back to the city’s core. “This is about bringing people, energy, and opportunity back to downtown Sacramento,” he said.
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