Hang on, the railway museum isn't being run by the city, and strictly speaking it doesn't even exist yet. They aren't talking about Roundhouse Park, they're talking about a proposed museum that would have occupied space in the Roundhouse. Instead of the guys behind the museum buying the buying the space Toronto Hydro did, and now Toronto Hydro wants to locate infrastructure there instead. And the kicker is that Toronto Hydro is even offering them 40% of the space that they never even had in the first place, and the museum folks have gotten indignant at the offer.
Those volunteers did a tremendous job at Roundhouse Park, and the city really should consider stepping in (or more realistically, chipping in) to help them out. Given the success they've had with such limited resources, and given how there's a burgeoning tourist strip along Bremner, it makes sense to maximize the potential of the attraction. At the same time, as things stand the museum never really had a claim to that space.