Based on the wording of the article, I'm guessing that Earl's spot on - nobody's actually spoken to the C&TS about this.
However, Will makes a decent point - 494 and 495 are looking pretty shabby, and they're about the last choices for ever restoring to service. They just sit there, getting worse by the year. I don't ever want to see them donated anywhere - they're integral parts of the historic property. But what about a lease? For some nominal fee per year (say, $1), you get this engine for X years. The lessee would be required to pay for moving the thing, provide fencing and security, and provide painting and upkeep to a certain standard. The upside is that the deterioration on 494/495 slows down (or maybe even gets reversed with a small amount of cosmetic restoration) and the C&TS gets more publicity. The downside is that there's always expense and risk in moving these things, K-37s are totally wrong for the Chili Line, and I have no idea what the legal implications would be of trying to loan out a piece of an historic site like the C&TS.