Extract Values to Points from a categorical raster, excluding one category?

Discussion created by maobrien on Jun 16, 2014
I have a point shapefile of lat-long points that represent bird sightings as well as a landcover raster for my study area.
I used the Extract Values to Points (Spatial Analyst) tool to create a new bird sighting shapefile with a field containing the type of landcover in which the bird was seen. However, given the inexactness of the x-y coordinates in the original bird data and its tendency to live on the shore, I have a large number of points that appear over the "Open Water" land type. What I'd like to do is change the value of points appearing over Open Water to instead reflect the land class of the point's nearest neighbor pixel(s). The pixel distance between the Open Water points and the next landcover type vary significantly across the feature class. Some points also appear equally close to two feature classes.

Is there a way to extract raster values to points, but specify that if the point falls within a particular class ("Open Water") to instead assign the nearest neighboring class?