I don't think so. According to the article, a peer review committee in fact upheld the Polanyi center's existence. Dembski then decided to do a little sack dance, and was fired as Director by the President of the University, apparently for not playing nice with others.
I'm not sure what Dembski's status at Baylor was. He seems not to have been on a regular faculty line, the title 'associate research professor' is usually not tenure track. In any case, he remained at Baylor until the term of his contract expired, last year.