Yes, you're jumping to conclusions.
The land was donated because this was a church car park. It was valued at $2.68 million, and that's part of the $12 million 'value' of the entire project. It was developed by a not-for-profit Society associated with the land owner, the Grandview Calvary Baptist Church, which is located one block to the west. The remaining $9.32 million was raised from public and private sources.
The project isn't just housing. it includes communal amenity space, as well as a kitchen, guest room, counselling and office spaces. Overall it's a building of over 18,546 square feet, so that's $502 per square foot to complete the entire project (including design, legal, permit fees as well as construction and landscaping).
Your example of the Joyce condo apartment is 365 sq ft on sale for $348,000. That's $953 per square foot.
Why you would jump to the inflammatory conclusion that either 'corruption or incompetence' are involved, without bothering to find and read
the rezoning report, or understand the context is concerning.