I really don't think that one would work in that location, especially in the form in which you envisioned it.
This is only my humble (student) opinion, but the reality is that that parking lot abuts no large public/cultural/entertainment institutions, so it is not a destination in itself. Furthermore, there is no large thoroughfare going through that lot (except for Queen, which borders only one of the shorter sides) so this space is not a place which receives a high volume of traffic.
Since this place is neither a destination in itself, nor does it get a great deal of traffic, the only way to get that sort of activity would be to dedicate a large portion of the parking lot to employment and hope that restaurants and boutiques would follow. Chances are we'll see some nondescript condo building go up on that lot sometime in the future. I'd say forget about this one and focus on a more centrally located plaza.