I thought this project was dead, but it seems to still be alive! The cyclocross season wrapup party was held next door to the proposed velodrome site, and sponsored in part by Fast Track. I had been planning to go and hear what the plans were, but couldn't stay around for the party to hear about it.
Then I saw the blurb on the news about it this week; apparently they hope to get an outdoor 166m track in this year sometime.
Link to the new site: http://clevelandvelodrome.org/