Finding no evidence of significant impact, the United States Forest Service has given permission to RLK Company to develop a mountain bike park at Mount Hood’s Timberline Lodge and ski resort. This recent decision would allow the park to begin operating by summer 2014. Opposition groups have 45 days to file an appeal, though the process is limited only to those who were engaged in the comment period.
Here's what Timberline Lodge has to say about the project, and here is a complete collection of related documents from the U.S. Forest Service.