The Oregon Land Use Board of Appeals last week sent back for further analysis the city of Bend’s decision to allow River’s Edge Investments to build a convention center and new hotel space on the west bank of the Deschutes River.

The city in December signed off on an expansion of the Riverhouse resort with a 55,000-square-foot convention center, hotel rooms, condominiums, a spa and a restaurant all located just south of the Mount Washington Bridge.

As part of the agreement, the city will receive land for reconstruction of the bridge, and River’s Edge agreed to drop a lawsuit over previous denials.

Neighbors had opposed the deal and appealed it to LUBA. Twenty-one petitioners ultimately signed onto the suit, challenging the decision on six points.

The state upheld the city on five of the six challenges.

The state, however, did sustain a claim that the city did not provide adequate justification for permitting a convention center on the property, which is zoned limited commercial.

The zoning code does not specifically list convention centers as a permitted use in the limited commercial zone. Instead, the city had approved it as an ancillary facility customarily provided in conjunction with hotels.

LUBA found that justification lacking in the context of the Bend code and remanded the decision.

City officials are discussing how to proceed. One option is to develop new findings that address the state’s concerns. Another is to deny the convention center.