Yes, proposed plans posted here a while ago, not a rumour just waiting on final. Really cant say too much more.
Keep in mind 37 storeys was huge back in 2001/2002 when it was approved. I could see an increase in height if there isn't some bylaw in the way.
Better: renovate/expand the Skywalk section along Station Street. It's one of the most interesting spaces in the city, but it's carries mostly event crowds and never really took off. Possibly even punch another pedestrian tunnel under the tracks. If that development on top of the old CNCP Telecommunications building goes through, that might help.High end shopping mall here as well?
edit: Perhaps Metro Toronto C.C could be retrofitted into a shopping mall?