A woman walks past the Employment Development Department building with a green facade.
The offices of the Employment Development Department in Sacramento are seen on Jan. 10, 2022. Sacramento State is eyeing the building for a proposed expansion into downtown Sacramento. (File photo by Miguel Gutierrez Jr./CalMatters)

Sacramento State is exploring a proposal to expand into a set of properties near the state Capitol.

Sacramento State President Luke Wood said this week that the California Department of General Services has given the university the exclusive right to perform due diligence on property along the Capitol Mall in downtown Sacramento.

The idea is still in its nascent stages, but could involve a mixed-use development “encompassing education, hospitality and housing,” Department of General Services Director Ana M. Lasso said in a statement.

An expansion near the Capitol would see Sacramento State following in the footsteps of other universities that have doubled down on downtowns or are weighing proposals to do so.

Arizona State University’s decision to develop a campus in downtown Phoenix, backed by a $223 million bond sale in 2006, has been hailed as one of the sparks that revitalized the city core. The university now has more than 10,000 students enrolled at its downtown campus, which is home to the Sandra Day O’Connor College of Law, the Walter Cronkite School of Journalism and Mass Communication and other programs.

More recently, the University of Utah unveiled plans to consolidate its footprint in the heart of downtown Salt Lake City, part of what university leaders called a “migration downtown.” Georgia State University has touted an ambitious bid to revamp its downtown Atlanta campus, thanks in part to an $80 million grant.

A statement from Sacramento State said the downtown center proposal could involve the Employment Development Department  Headquarters Building, EDD Solar Building and State Personnel Building. State leaders previously planned to renovate those structures and convert them into about 700 residential units, but a private developer withdrew from the project last year.