Toronto Waterlink at Pier 27 | 43.89m | 14s | Cityzen | a—A

I seem to recall seeing in Waterfront Toronto plans that a narrow strip of land between Captain John's and the future Pier 27 development had been reserved as public space. Hopefully, this implies ownership by the City, who surely would not allow the Captian John's eyesore to stay. I suppose a lot will depend on what is contained in Captain John's lease/docking agreement, however.
It would be nice to see another gorgeous wavedeck take the place of that old, leaky tub.
I just found this update on Toronto's building application website (I guess miller was right, permit processing is partially back):

Application: Partial Permit Status: Revision Issued

Location: 25 QUEENS QUAY E

Ward 28: Toronto Centre-Rosedale

Application#: 08 194355 SHO 01 PP
Issued Date: Jul 20, 2009

Project: Apartment Building Partial Permit - Shoring

Description: Revision to shoring and excavation by adding tiebacks on eastern property line.
Dropped by the sales centre, Phase II is 90% sold and they are "hoping" to break ground in October. Although the sales rep didnt sound too optimistic.
interesting point, on the other hand though they are also building Absolute World in Mississauga. Maybe when they finish those two buildings they can send some workers and equipment to Toronto!
I'm sure now that I'm saying this the damned thing will break ground tomorrow, but what great news for the city. Maybe if we're really lucky governments will be able to resurrect the deal that Harper killed and buy the land so that the most central waterfront property isn't given over to a monolithic multi-block gated condo community, no matter how pretty the design might be. I'm all for building Pier 27 in Mississauga or Richmond Hill where it would be a great addition.
October 14 2009 update

I popped into the sales office today to inquire about this project, Pier 27 staff advices that construction will commence in approximately 2 weeks ... this seems realistic as she refers to the construction trailer and the new lumber recently brought to the site in preparation for the construction hoarding (seen below)

Further, an interesting fact ... Pier 27 staff notes that Phase 2 (east pair) will in fact commence/complete construction first (sometime in Summer 2012) as the City wants the noise barrier wall built first to ensure Phase 1 (west pair) is protected from Redpath future plant noises ... in effect the east building of Phase 2, which is a one sided condo with suites only on the west face, doubles as a noise barrier wall ~

good news :D ... soon this puppy will rise ~

Click to Enlarge
Danny Salvatore, President of Fernbrook Homes sent letters (dated October 5) to Pier 27 purchasers saying, "We now have our building permit for Pier 27 in hand, and construction has begun..."