We are facing rapid climate change worldwide - see Hungary's recent shutdown of its only nuclear generator due to water sheds drying up. Not studying data centres that currently use massive amounts of water for cooling would be irresponsible to current and future Ontarians. That IS NOT progress to surge ahead without considering consequences.
I think your analysis is correct. I will add that whatever the province dumps onto the municipalities has to be paid for with property tax. There are good reasons to have a property tax but owning property, a house for instance, does not imply the ability to pay increasing property tax. Seniors living in houses they bought decades ago but whose income has since decreased will relate to this.Property tax should cover the direct cost to the city of hard services such as sewers and water. Other services which everyone needs such as fire protection should come from a progressive income tax which varies with ability to pay. There's no reason that cities could not have an income tax. It is done elsewhere. It would provide a fairer source of funding for these services.
Sorry to say downtown will never be the same again. Take best offer and run! I’ll never be going downtown ever unless I have to. Lived downtown and loved downtown for many years and have never seen it this deplorable. Best of luck to new owners if any buy it. Downtown a ghost town in my opinion.