Wow! I'm floored by some of the comments made in this thread. Using expropriation powers to demolish the block of buildings along Yonge so the park can be extended? Really folks??
The community strongly desires a park on these lands. The provinced owned the lands which was surplus to their needs so the conducted a disposition process.
The city wanted to noncompetitively purchase these lands, far below market value, so it can built the park. That request was snubbed by the province. (In addition to S37 payments and development charges, the city also collected a fee in lieu of parkland. So the city has an account for parkland creating but probably nowhere near enough to acquire the property at the market value.)
Lanterra is the winning bidder and wants to develop a two-tower condo project. KWT, to her credit, is working with the developer so the footprint of the condo tower can be minimized to just one slender tower while the rest of the land becomes a public park.
I'm really excited about this development as it balances the needs and wants of the community with the rights of the developer.
And no the city does not have the right to refuse any development it does not like. Last I checked Canada has a rule of law. At a minimum the developer can build up to zoning and possibly more from OMB/court system since the zoning is outdated and not in conformance with Toronto's Offical Plan and Places to Grow Act.