If you look at zoning maps, a subdivision was planned for that area but never happened. It looks like they got as far as surveying the main streets, then gave up. I've mentioned before that I think a recreation area would be beneficial to the neighbourhood, with the wings in the rear of the LPH being demolished to make room and the front office being expanded into a library/community centre for the NE end of the city. I can see the norther part of the LPH property being re-zoned high density or commercial to fit in with the current high density area at the end of Toledo.
I don't know if I posted it here or not, but DJ.SURF.RULES from cptdb.ca mentioned a rumour about transit using Donald Street between Brodie and Archibald as a temporary transfer area. I was hoping it would be closer to SkiHaus or Take a Hike, I'd like to use those businesses as bus stops to prove a point about urban transit infrastructure to their misled proprietors.
There wasn't much remediation for the McKellar hospital's conversion, but I think the law is different if the building is torn down completely. The property will probably become a lab of some sort, the area is becoming sort of a research node.