Article in the Bee today talking about the new state office tower at 7th & O. Sounds like they're looking into the option of building around the Heilbron House instead of moving it. Reminds me of that one highrise in Denver that was built around an old church.
Preliminary design is "20 stories and 300 feet tall".
http://www.sacbee.com/news/local/article154048834.html