To be honest, I completely understand the residents concerns with this shelter.
New Toronto had a significant problem with drugs and prostitution in the late 90's through to mid-2000s and it tooks years and years of various forms of intervention to rid the neighbourhood of the issue. The city and TPS even tried moving a local post of 22 Division right on Lake Shore around Islington because the problem was just out of hand.
Over the years the problem was significantly resolved through various mechanisms (ie: expansion of Humber Lakeshore, community programs, townhouse developments, revitalization of Colonel Samuel Smith Park, etc).
What they are concerned about, is that this shelter would introduce a lot of the same problems that this neighbourhood fought so hard to get rid of not even 20 years ago. Then add to the fact it's literally located next to an elementary school/daycare, and a middle school and that's just a cocktail ready to be flamed. The area has been home to many shelters over the years, and they likely feel to an extent that the burden always gets placed on the neighbourhood every time shelter space is proposed.
Personally I would be against locating it in this area as well. I completely understand the need for shelter space in the city, but the city really failed to understand the concerns of why the neighbourhood is so vehemently against it in this case.
If the city is oh so serious about shelter space, why not propose it in one of the many lovely Green P lots around Bloor/Royal York? It's a rhetorical question, I know exactly why the city wouldnt even dare propose something like this in that area.