At its meeting Monday night, the State College Borough Council approved a plan to rezone the property at 254 E. Beaver Ave., home to Canyon Pizza.
This will allow the building to be labeled as a "residential office" where businesses and residents may share the same building.
Anne Messner, State College Zone Planner, said only 254 E. Beaver Ave. will be redeveloped, but there has been no formal submission by the owners.
"As a staff, we work for the benefit of the community," she said. "It provides additional office space, a new residential building and it would maintain a retail aspect to the area."
Borough Council President Don Hahn said he was not happy with the council's decision but added that "it's better than the zoning originally and it allows more density than [he] wanted."
"They gain an additional two floors," he said. "The current R-2 zoning is ridiculous."