According to the literature we were given last week it is still "proposed construction". The current AKL is all being renovated. The completion of the entire lodge as we know it today is suppose to be done by May 2008. As I understood it, Kidani Village initial phases are scheduled to open in early 2009 (per DVC "Dream" literature we were given.)
We were just there and didn't notice any construction beside the lodge but we weren't looking for it. We did notice the construction on the upper floors as you look up when you are in the lodge. They do a good job of hiding it but you can tell there is something going on. But, I will have to say it was not obtrusive, at all.
When we were there last May, there was a lot of moving of dirt and lining up of construction trailers, but that seemed to be it except for the building of the new barns. Those are completed now, so any construction you see now outside of the original lodge should be of Kidani
I can confirm this, too. The Sunset Savanna is closed right now because of the prep & construction of Kidani, which will also have Sunset Savanna views.