Last Sunday I rode the Oak Savannah Trail from it's west trailhead in Oak Ridge Park (Griffith) to the current east trailhead at Wisconsin St. in Hobart, Indiana. The good news is that a 1/2 mile segment between Wisconsin St. and Lake Park Ave. is marked with surveyors flags, apparently in preparation for construction. This will connect the OST with the existing trail fragment from Lake Park Ave to Indiana 51 (Main St. / Lincoln St.).
Since my group stopped at the DQ on Main St. and reversed direction after refueling, I can't say if the remainder of the proposed connector trail east of Indiana 51 to the Prairie Duneland Trail was also ready for grading.
Rail-Trail progress in Northwest Indiana