South Pasadena's redevelopment plan for the area around the Rialto Theater is still dormant. The original developer ran into financial difficulties and abandoned the project some time ago. So the only news is that the city is trying to get someone else interested. David Fonseca wrote a story about it in the South Pasadena Patch in October. Also see his November update.
The project as designed doesn't even include the theatre. The hope is that it would be a catalyst for renovation of the theatre building. A Rialto renovation is part of the city's 5 year plan.
The photo above is one I took in February 2010. Click to enlarge or head to my recently updated Rialto Theatre page for more information about the building. I've added some new links to other sites and collections that have nice interior views.