The best place for daycare in Cabbagetown is the essentially abandoned St. Martin Catholic School site at 55 Salisbury Ave.
Actually, for this site I would love a low-rise condo - maybe 4-5 stories with setbacks. I bet you could add 40 or so units on that space. It would add vibrancy...and now I'm dreaming about Park Snacks getting a liquor license, or a craft brewery! Mmmm!