I don't think that they planned to demolish 8-10 houses. From what I remember, the plan was to demolish more like 4 and eat into the front yards of another 4-8. It was voted down by the city council due to protest. Since that time, three of the four property owners at that intersection have come to the city wanting to sell... the church, the business and the apartment duplex. The city is buying the apartment building. The real holdup is the person on the SW corner.
I for one can't believe that anyone would want to live right at that intersection. They're offering appraised value and the owners can get second opinions if they don't like the number. In this market, I'd be packing the second they mentioned buying the property. Move somewhere that's NOT the busiest intersection in town. IMO it will still happen eventually, but I'm betting it's 5-10 years down the line. The city is going to want to streamline Grand when they connect it all the way to S 16th and that intersection will be the first priority.