I got a personalized tour of the park back in winter of 06. I do not remember the specifics of the conversation, but he made it sound as if the deal was either final, or going to be final. Either way, even if this ravine is just used to drop roller coasters into, I think this would be a foolish mistake to pass up this opportunity on their doorstep. Besides, if Kennywood has been buying property in the neighborhood directly behind the Exterminator, why wouldn't they buy this property? It seems like a much better investment, considering how they're not guaranteed that everyone in the neighborhood will move out right away.
Now the following may be indicators of who owns what property. The same type of fence that was constructed at the base of the Phantom ravine, was also present along the ravine of this new property. It could be just installed as part of the Steel-Valley heritage trail, but maybe not. Also, there was PVC drainage piping on the abandoned structures installed. As far as I know, PVC was not used back when these structures were built, and the piping looks recent. This indicates that whoever owns the property, is looking to maintain those structures. This was directly in line with Kennywood's interests.
Another rumor I heard, from a local resident of West Miffilin, stated that Kennywood was looking to relocate Sandcastle into this ravine. As a coaster enthusiast, I this is a poor decision if it's true (but I doubt it is). Granted, guests may be able to have access to two parks at once, but this limits any hopes of expansion for the park itself. Plus, they would have to spend mounds of dollars disassembling, transporting, and reassembling all of those water rides, and they are not getting anything new out of this! Additionally, what will they do with that leftover property????