That's all federal land, so not a chance... other than for more government buildings.
While not common, this is not unprecedented.
Federal land does intermittently get transferred from time to time, where it makes fiscal sense. For example,
Federal transferred to Hamilton some land+building recently. Initially, Hamilton Pier 5,6,7,8 was federal land, then the final parcel (Discovery Centre) was finally transferred was also former federal land AFAIK. City of Hamilton is (controversially) trying to sell that facility to
developers that would also develop the nearby Pier 8 lands. It's quite the waterfront denitrification plan that Hamilton has.
Actual fed land to development.
(Part of it is now under construction -- the new waterfront trail & the municipal prep work is underway for the developers who won the rights to build this)
See....
Not unprecedented for federal to provide surplus land for development. This area is also near the convergence of the future A-Line BRT/LRT as well as the
newly built West Harbour GO train station. Now you see where I am getting at about the magic recipe?
Patience (25 to 50 years) will be all that is required -- the right financial sense at the right time -- and the right arrangement: Freeing up massive amounts of useless parking lot asphalt with a solution (parking garage, extra fed buildings, and the remaining gets freed for other development). Rheoretical question; with
Transitay BRT+Carling BRT/LRT+Bank St Subway converging at Billings Bridge -- that means there will be much land-value capture to unlock. At that point, why does Data Centre and other facilities need all that slowly-becoming-useless parking lot land anyway? Feds would easily get a free parking garage & a couple of free new buildings thrown in by a developer that really wants the parking lot lands for development. That's exactly how valuable Data Centre parking lot suddenly becomes. $$$$ $$$$ $$$$. Feds prefer to do nothing for now? Okay, it will just sit there for 10 years, 50 years, 100 years -- gaining value as nearby Billings Bridge densifies further. With climate accords pressuring transit expansions, land-value unlocks tends to occur.
Like it just did in Hamilton. See? At some point, people will continue asking themselves that question for the rest of the century. As long as the development remains south of RA Centre, it won't interfere with recreational facilities or produce any shadows at Rideau River, and will have relatively low (albiet nonzero) NIMBY factor as no residentials are too nearby that. It might not happen for a few decades, but -- Billings Bridge will probably grow in mobility hub importance over the decades, encouraging a major densification opportunity of that area later this century. Especially if Billings Bridge starts first, then it spills over to optimizing nearby lands. Like, you know, Data Centre parking lot wasteland, and other opportunities.
If Hamilton can do it too, then Ottawa can. At least it's far more likely to happen than a MOOSE system.