Is there any reason to assume it's not just a new building for the current parade? That way they can demolish the current building, and build Nintendoland over the old site. Heck, you could even connect Kidzone to the expansion plot and make one massive Nintendoland, allowing for Mario/DK AND Hyrule.
Considering how much larger that plot is, they should demolish the current building and use that space for the park. Wasteful not to.
Where is the current building located?
Next to where Roanoke was last year and where TWD will be this year.
I agree the space could be better used but there are neighbors near there and having the park expand to the limit may cause some friction.
So I checked, the cleared and filled area is staging for the Hulk refub not a new parade building.
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