I haven't had any recent conversations about what's in store for Columbia School.
Last I heard, Torah Day School had applied to the District to move into Columbia School. Then the South Shore School (the New School) moved back into their temporary home ('07-09) while the District figured out what in their new Rainier Beach building has made people sick. Assuming the health concern is resolved, Columbia should be available again in the fall. I think the District’s RFP (Request for Proposals) originally stated the site would be available for a three-year lease.
Right now (July 2010), the District's site says this:
The Columbia School lease is on hold pending a decision on reoccupancy of South Shore School.
Meanwhile, TDS is hiring, though "Columbia City" could refer to their current or proposed locations. I think TDS' proposal includes other neighborhood-based organizations, so other Citizens are definitely more in the know about this.
I also know very little about TDS, and their website is pretty sparse. Here's some of what other people in the Jewish community have written about the new and growing school: