Plans for a resort on the banks of the Deschutes River just north of downtown Bend cleared another hurdle Wednesday night when city councilors inked a development agreement with River’s Edge Investments to expand the Riverhouse resort.

The agreement sets the stage for the construction of a 23-acre resort with a 38,000-square-foot convention center as its centerpiece. The city council is expected to put its final stamp of approval on the resort at its next meeting, Dec. 15, when it will set out a series of development conditions with River’s Edge.

”I think the overall project is going to be a great project, not just for the Riverhouse or the council, but for the city of Bend. It’s going to be something we can look at in the future and be proud of,” said Wayne Purcell, a Riverhouse partner.

River’s Edge plans also include a future 102-room hotel, 80 condominium units, a spa and restaurant located just south of the Mount Washington Bridge.

As part of the development agreement, the city gets land for the reconstruction of the Mount Washington Bridge. The city has put that project on a fast track to take pressure off the Newport Bridge, which will be closed for reconstruction in 2006.

In addition to the road right of way, the city also worked with River’s Edge and the Bend Metro Park and Recreation to secure easements for additional segments of the Deschutes River Trail through the resort property.

Project opponents plan to appeal the city’s final decision, said Greg Hendrix, a Bend attorney representing neighbors.

In other business on Wednesday, the city council:

– Endorsed a proposal to put some Bend streets off-limits to widening. The proposal rewrites a portion of the city’s long-term transportation system plan. Council agreed preliminarily to use computer models when analyzing street-widening alternatives. The city’s previous policy required that the city test other options such as bike lanes and public transportation before widening a street. Councilors said that approach is both time-consuming and difficult to evaluate. Streets proposed as off-limits to widening are: Newport and Galveston avenues, Franklin Avenue, Riverside Avenue, Bond and Wall streets, 14th Street, Olney Avenue, Eighth Street and Bear Creek Road. Councilors selected those streets because of the negative impacts of widening on the surrounding neighborhoods.

– Established a downtown bicycle parking fee for developers. Similar to the city’s in-lieu-of automobile parking fee, the rule requires developers to pay a $1,000 fee if they are unable to provide the city-mandated bicycle parking stalls downtown. In a related item, the council voted to raise in-lieu of parking fees for automobiles and reduce a discount available to developers that sign a long-term parking lease in the planned downtown garage.

– Discussed the Newport Bridge replacement project. Councilors weighed several different design types. Councilor Bill Friedman said he would be opposed to limiting the bridge to two lanes as residents who attended a November forum favored. Friedman said the city ought to consider a third lane on the bridge to accommodate traffic congestion at Wall Street. City Traffic Engineer Deborah Hogan said the city will be looking at that issue as it is required by the state to build a bridge that will function under traffic demands 50 years to 70 years in the future.

Eric Flowers can be reached at 541-504-2336 or at eflowers@bendbulletin.com.