^We've talked about this development a little on SSC. Lonie Walker (on the Underground Wonder Bar's website) says that their lease has been extended through May, however, their plans to relocate to Division Street haven't worked out. Hopefully they'll find a new place nearby.
As for the development, yeah you're pretty much right.
There was another rendering with more floors on top but I assume those have been lopped off by now. I believe the building next door (east) will remain and probably turn into luxury retail space.