Last I heard was that they were discussing changing the railroad's route through the park to make it more like Disney's railroad to haul passengers now that they have parking across the road. I hope they don't get rid of the town. It's a lot like Tweetsie Railroad's town.
I'd not place a lot of faith in sandhouse talk. Last time I was there, the train crew were very stand-off-ish. I got there a little too late in the day to visit the folks in the shop (and goose #3.)
Oh - BTW - it's official that Tweetsie's lease is good through 2010. But they do have land in Wilkes County nearby in case they have to move. Apparently they own some of the land but lease two other parcels. (From the News and Record in Greensboro, N.C.)