This is definitely still a go... I don't think the developers will be holding on this project.
This was posted six days ago on Loopnet looking for a tenant for 16,000 sf of street retail space.
The post states that the expected completion date is Fall of 2013 and the retail space will be ready for occupation by September 2013.
Like I said before, I believe the developers are possibly just waiting until 2040 Market is complete.... it would make sense. They could just move all the equipment and employees right down the street instead of bringing in more employees and more cranes/ other equipment when it's already there right down the street.
A building like this also will only take about a year to construct.... so I think it's safe to say construction will start on this at the end of the summer/ beginning of Fall after the completion of 2040 Market.