I believe it's supposed to be completed sometime in 2012. Yes, I know...it does seem to be a long time from now.
The Pixie Hollow Character meet and greet at the Toontown should tie you over until then. I'm sure your daughter will love seeing Tinker Bell and the other fairies. And I'm sure it'll worth the long wait times. My daughter was able to meet Tinker Bell, Silvermist and Iridessa. They were great. But the wait was very long.
By the way, this link was posted at another thread:
http://www.youtube.com/watch?v=08W5Os-Wnj0