With the recent filings for permits (that were almost identical to the original permits), it looks as if work is restarting.
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It is ultimately my hope that with the opening of the Poly Tower and eventually this hotel, that it will drive more DVC folks to book there so that there is most availability at the locations with lower point values at 7 months.
With the current economic climate, I would be a little surprised if Disney is able to sell DVC as much as they would like. It is a rather expensive endeavor. But maybe things will turn around by the time this hotel is finished.