I have the opportunity to bid on project located on a nice forested slope (~10% slope) located below a forthcoming subdivision installation that would involve lots of grading and erosion. I am pitching this as a short term environmental protection project that could be converted into a unique built environment feature that the future neighborhood could utilize, (i.e walking trail, forest farming, etc).
So this to me sounds like you just want a project to work on and not develop this piece of land for self use?
In the case of a 10% slope with a subdivision being built up hill, things like fertilizer run off, poison leaching and runoff (herbicide, pesticide) from new owners in the subdivision need to be considered as well.
There are many problems with trying to dig swales into an established forest floor. The root disturbance issue has been mentioned by others, there must also be consideration of the effects of the resulting water plume.
At a 10% grade there is a very real possibility of setting into motion the very things that create Mud Slides and Hill side collapses, so legal issues should be addressed before any sort of earth works begin.
As has been mentioned, in an established forest it is usually better to build on top rather than dig down. There is already an established order of soil life and you need to determine if that is worth disturbing or killing since one or the other would be the result.
erosion from above should be prevented as close to the site of erosion, meaning right at the edge of the subdivision in this case. With out having control measures in place where the troubles could begin, you are inviting a failure of control of erosion.
Built up berms would be the best use of effort in this case.
Wood would need to be left on top of the soil with no covering so there would be some leakage along the log/ soil contact line.
In any case I recommend you study hydrology before setting out to attempt any in the woods constructs just so you have a good idea of what could go wrong and plan accordingly.