Not entirely. It goes in to the "
FUTURE EXPANSION" space that the famous Miceage Update map from last year showed. It's the box wedged between Toontown and the Millenium Falcon ride, and it's accesses via the current Fantasyland Theater area behind StorybookLand. Here's the Miceage map from 2015.
And again I have to say, that old Miceage map just looks more and more accurate by the day. It really was a scoop when they dropped that into an Update last year!
And here's an aerial of cleared land from six weeks ago, with the Star Wars footprint overlaid onto it. Frozen/Arendelle area would be left open after the Star Wars dust settles and Star Wars Land opens.