If a development application met the applicable zoning, development code, and legal requirements but the City denied it without a legally sufficient basis, the applicant could appeal the City's final decision to LUBA. Depending on the circumstances and the legal issues raised, LUBA could determine that the City's decision needs to be reversed or remanded. LUBA's possible outcomes include affirming the local decision, reversing it, remanding it to the local government for further action, or dismissing the appeal.
This is why the City's land-use decisions must balance public input with the legal standards that govern development. Public comments and concerns are an important part of the local land-use process, but the City must ultimately make its decision based on the applicable laws and development standards.
LUBA decisions can also be appealed to the Oregon Court of Appeals.
Check out the Oregon Land Use Board of Appeals FAQ page.