Yes. The two projects will help each other: what I do in Tanuki tail can be useful in the other game and vice versa, so it will be still in development. The story of Tanuki Tail, although not fully developed, is an old story I once came up with, first as an idea for a manga, then for an adventure game (a lá Lucas Arts), and now as this NDS game, so I want to push it through.
In any case, I'm about to start another game in collaboration with a colleague from college (pun intended), so progress on that would go even faster because we see each other every day. Also, this game will be easier to make (Tanuki Tail is a hell of geometry that will soon be unstable and needing lots of optimizing, this one will have tile-based movement [like pokemon]). The story will be less crazy so will be easier to make when the engine is done enough.