A hearings officer approve the site in southwest Bend following two days of testimony earlier this summer.
The group "Truth in Site" that opposes the location appealed.
But the City Councilors supported the hearings officer's approval with a few amendments. Bend City Councilors Mark Capell and Sally Russell made the motion.
"Mark Capell: to move to approve a hearings officer's decision with modification from staff reports and changes we discussed. Sally Russel: I'll amend my second."
Before their final decision, Councilor Russel, expressed some frustration.
"This is a very difficult decision and frankly I resent having to make it. As a community leader I really expected a more inclusive process and I hope the university hears us and going forward, I hope this process is a much broader process."
In the end, the council voted to deny the appeal and support the hearings officer's decision to approve the site.
But they did put some conditions on parking and preventing congestion with area schools to help reduce potential problems.
The group can appeal the decision to the State Land Use Board of Appeals.