Mike,
Wasn't clear to me if you had the whole story or not so forgive me if this is old news. The Union Station redevelopment is largely (about 2/3 as I recall) funded by the FasTracks initiative, so it's a definite go. The plans have yet to be finalized but they're supposed to begin construction within a year or 18 months so there's no chance of this effort going away.
At the link below you can see the vision presented by the winning team. There are a lot of photos as well as some interesting diagrams showing the proposed layout of the area after the redo.
As a side note, I was down at the station last weekend and was surprised to see that the snack counter has already been removed, leaving holes in the wall, some messed up stonework, and a big empty space where it used to be. Too bad...
Trivia question: I assume the ugly square flourescent light fixtures hanging in the station are not original; anyone know when they went in and what they replaced?
Chris Weaver