The group "Truth in Site" made up of homeowners near the proposed site on Southwest Century and Chandler Avenue, oppose the site believing it will lead to traffic and parking problems in the area.
The City Council opted to hear the appeal and will rule on it.
But if the group doesn't like their decision they can appeal again to the State Land Use Board of Appeals.
The public hearing will be held Monday at noon at City Hall in the Council Chambers.
It will be broadcast live on COTV Channel 11 on Bend Broadband and the city's website.