I've been reading and hearing rumours for years about a new MK monorail hotel, with a "Mediterranean" theme. Any updates or new rumours? I haven't noticed any construction.
Rumor had it that it would be themed on Venice and would be located between Polynesian and Grand Floridian. It seems that I read that it had been put on hold after 9/11. There were renderings and maps on the website where I read about it. I believe it was part of the original master plan from the '60's.
You might post on the Rumors board and see if anyone has more info.
That rumor has been floating around for years. I believe Walt himself had thought that one up. I saw a sketch of it online a couple years back. I think they trashed that idea long ago but every once in awhile the rumor starts circulating.
I just found an old version of Frommer's ('97 to be exact) and started looking through it. I didn't remember reading about it before but under the Disney Resort section it had a paragraph about this resort. First it mentioned that CS was due to open in the fall of '97 then went on to say that a year or two down the road the deluxe 1,000 room Disney's Mediterranean Resort would be opening. It said that this resort would occupy a prime monorail location on the Seven Seas Lagoon. The architecture and landscaping would "capture the romance of the sunny resorts of the Greek Islands."
It seems as though there would be plenty of room on the land between the Contemporary and the TTC. We were looking at that area on one of our past trips and it is large enough to have a resort there. As for the stability of the soil? I am sure that the Disney Company could take care of unstable land if they really wanted a resort there. They have constructed a lot in that area and I'm sure that some of that soil would have been not-so-stable for building on.
I have heard several rumors that they could be thinking about another deluxe along the monorail to Epcot. That would be the most stable land to build on. But, who knows. It would be nice to have another monorail resort.