The land is currently up for sale and the developers are expected to accept or reject the proposal within six months.

Penn State's proposal calls for the destruction of current structures and relocation of the Greyhound bus depot to another spot on campus. Construction would consist of a 200,000 square-foot research building north of Railroad Avenue and a 72,000 square-foot mixed-use building south of Railroad Avenue. The mixed-use building would include retail space along North Atherton Street, three floors of office space and 20 condominiums spanning two floors.

The building would be 25 feet back from the curb, allowing a 10-foot-wide area for benches, café tables, trees and a large pedestrian sidewalk.

Additional parking would be placed adjacent to this building, made to accommodate 125 vehicles.

But Penn State officials said this project is at a very early stage of planning.

"This will not be a profit-making endeavor," said Tysen Kendig, Penn State spokesman. "At this point, the entire project is a concept as opposed to a formal plan for using the space. No timetable has been set yet."

Penn State has held talks with H.O. Smith & Sons Inc. for five years without coming to a formal agreement.

"We're not interested in starting discussions. We have other proposals we have to consider. This is not necessarily 100 percent in line with what we anticipate," Smith said.

Other bids were received before the Oct. 31 filing deadline. It may take up to six months to decide on which to accept. Smith declined comment on any other bids.

Downtown State College Improvement District executive director Teresa Sparacino said the proposal is in line with the downtown vision.

"Penn State is responding to the community and what community is requesting. I think Penn State's plan puts a good use to the space. It is well thought out."

She said the group is taking a site that's currently under-utilized and hopes that other builders would follow a similar model for planning.

Mark Ross, owner of Alley Cat Music, 122 N. Atherton St., said he likes his current location, but could get through a move if forced to.

"Until something is solidified, everything is purely speculative," he said.

Susy Glenn, manager of Party and Wedding Corner, 140 N. Atherton St., said she is not opposed to North Atherton Street development and would continue the business as normal.

Representatives from Viet Thai Restaurant and Far Corner Oriental Market were not available for comment.