That bid was topped by a $25.3-million offer from a residential development company, but the former site of a state hospital that closed in 1991 won't necessarily go to the highest bidder. In addition to price, the state will consider factors including the potential economic effect of the two proposals. A decision is expected by Aug. 30, state officials say.

Toyota isn't discussing details of the proposal, which was submitted Monday to the state Department of Management and Budget. But the company says it has little room to grow at its 106-acre Ann Arbor campus. And an expansion would fit with Toyota's goals of strengthening its US presence. Toyota employs about 550 people at its existing local campus, but wouldn't comment on possible job additions at the new location.

The high bid for the land was submitted by DPG York LLC, which is a part of Bloomfield Hills-based residential development company Diversified Property Group.

It would appear the governor's office favors the Toyota proposal. "This (Toyota) project is the type of project that we are anxious to have located in Michigan," says Liz Boyd, spokeswoman for Gov. Jennifer Granholm. "It speaks to our goal of making Michigan a global, economic powerhouse in the 21st century to have these advanced, automotive R&D-type programs in our state."