SACRAMENTO (CBS13) — UC Davis has officially broke ground on Aggie Square as the first phase of construction is now underway on the $1 billion 8-acre life sciences campus in Sacramento.

Aggie Square will be nestled between campus buildings near Stockton Boulevard and Third Avenue. The project will see would see the building of labs for UC Davis researchers, classrooms and student housing.

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The $1 billion innovation hub will also support start-ups, launch new businesses and provide a platform for cutting-edge work in the field of life science, tech and healthy communities.

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Mayor Darrell Steinberg said he’s been working with the university for years to help make the city of Sacramento a health and tech hub.

“The Aggie Square is the definition of inclusive economic development.,” Steinberg said Wednesday. “Aggie Square is the city’s most economically transforming development in decades.”

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The university says it’ll create 25,000 jobs, and bring in $5 billion to the region each year.