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You may well be right and Lake Placid's desire to initiate any legal action may also be limited by the fact that it would involve a significant outlay of money without a high probablity of success.
The interesting thing about this parcel of land is that it falls under the Direct Control District No.1 guidelines, as opposed to a typical zoning designation. Here is the original DCD1 document:
http://www.meewasin.com/common/pdfs/about/document_library/dcd1_guidelines.pdf
It was then amended in 2008 to accomodate Lake Placid's requirements:
http://www.theriverlanding.ca/reports_public_input/reports/dcd1_guidelines/dcd1_guidelines.pdf
Among those changes were an increase from 50,000 sqft of office to 100,000 sqft. Even then, the RLV condo design was beyond the 20 storey limit of the guidelines. So, what I'm getting at is that this isn't a typical situaton of simply applying for re-zoning - rather it's set of development specific guidelines for a particularly sensitive area of the city. And even then, those guidelines are something of a moving target. The new proposal now tears that target down and places it further away by going to a 27 storey condo and a 17 storey office (presumably containing well over 100,000 sqft of floor area).
While I personally have no objections to what the Nasser group is proposing, it still would surprise me if we don`t get some sort of statement from Mr. Lobsinger. I could well be wrong and the financial arrangements between Mr. Nasser and Mr. Lobsinger may have been statisfactory enough for him to stand quietly on the sidelines, but it certainly wouldn`t be in keeping with Mr. Lobsinger`s style to date.