This development at Bloor St west and Dundas St. West has been rejected by the OMB with the cities will. In this post are image grabs from the decision that provide a good overview of the respective positions of both sides which also give a good idea of how developers view such issues.
They also give some insight into the Crossways development
In the Globe and Mail (thanks blog reader David for this link)
OMB decision download (pdf)