Last I heard is that Disney is not moving ahead at this time and that the buildings that are there need major structural refurbishment before construction begins to complete them.
When I first heard that Disney was doing such a big resort I was amazed on the number of rooms. The Classic Years which is the part that is open has 3,500 rooms. I'm not sure if there is a need to add another 3,500 rooms on the other side of the lake when you can still get a room at the other values for next month if you wanted to. However, I would love to see the original plan happen, because it would be awesome to have another resort like that. I love the Classic Years and I would love the Legendary years also.