The amount of land that's going to be reclaimed along the water and even just on the Gardiner/DVP interchange is enormous. The property taxes that will be generated along that route will more than pay for this project and continue doing so for generations to come.
You don't see how several kilometers of prime waterfront land can generate valuable property taxes year after year that will pay for this project and eventually become pure profit to the city since these will be property taxes which they never had?
No, it will not if it is residential development. Yes, it will produce new tax revenue that was not there before. It will also create new spending pressures that are were also not needed. At present, Toronto's rate of property taxation on residential property does not recover the 'citizen centred' services that the city provides. So I repeat, unless those new residents are are willing to pay tax and not receive services from the city, they will be produce a negative return for the city.