By Steve Large

SACRAMENTO (CBS13) — There’s a new push to pivot away from state government in Downtown Sacramento. Now, a 28-story luxury high rise is coming to Capitol Mall in downtown Sacramento as part of the calls for more downtown housing and entertainment.

The proposed development would go up on Capitol Mall and 3rd Street—one of the gateways into downtown.

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The current location, known as “Lot X,” was one of the parcels the Kings ownership group received from the city of Sacramento when they purchased the NBA franchise in order to prevent the team’s move to Seattle.

Nashville-based Southern Land Company announced plans for the development in October. It’s the company’s first development on the west coast.

Parker Larson is director of acquisitions for the West Coast at Southern Land Company.

“The city has been on our company’s radar for a long time,” Larson said. “It’s the perfect spot to do what we’re proposing.”

Barry Broome is president of the Greater Sacramento Economic Council. He’s calling for more big changes away from government-dependence downtown.

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“The downtown really needs to reinvision itself,” Broome said. “To have all these concrete buildings around the downtown where there’s 12 employees in them. If you’ve ever been in these offices, I mean you could play flag football in them pre-COVID. So they’re very under-utilized spaces.”

The first residential building to go up on Capitol Mall—The Frederick—is nearing completion.

The Sacramento Downtown Partnership lists 25 new buildings going up in and around the downtown core right now. Only four are planned for government-use.

Broome says Sacramento needs to turn its downtown into more of a midtown with more entertainment and housing.

“We should be thinking about getting the government out of there all together,” Broome said.

Now, a new investor is doing just that, aiming for luxury living in a place of long-time government space.

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The new luxury residence is planned to break ground in 2023, with completion expected in 2025.