A plan to construct a hotel and retail development near the Hood River Waterfront took a big step forward Tuesday night when the Hood River Planning Commission voted to approve a conditional use permit for the project, despite objections from a local citizen group who say the project is improperly sited.

The development, referred to as Nichols Landing, is slated for construction at the south end of the Nichols Boat Basin — the former site of Nichols Boat Works — and would consist of an 88-room, four-story hotel, as well as a separate 20,000-sqaure-foot commercial building. Naito Development LLC, a Portland developer, is the project applicant.