When Toronto City Council meets in May, councillors will be asked to turn a blind eye to a scathing report by city staff, and approve a multi-building condominium development that planners have called potentially "unsafe."

Some local councillors are standing behind the project, proposed to go up along a busy rail corridor near St. Clair and Keele.

The city has been asked to approve an application that would allow four condominium towers, ranging from eight to 14 storeys, to go up at 6 Lloyd Ave., where a former Benjamin Moore paint factory stood for years.

It's a neighbourhood that brings to mind an older Toronto, where industrial jobs and two-storey homes intersect.

The developer, Stanton Renaissance, has advertised that the mixed-use proposal will also include "a space for the arts, a vibrant farmer's market and local business space."

Some councillors from the area have a history with the developer and have supported him on a condominium project in another west-end ward.

But city planners have deemed this plan inappropriate for a variety of reasons, outlined in a staff report, saying:

The buildings would be located too close to the neighbouring rail line.

The proposed buildings would be more than twice the height allowed for any development on that site.

The buildings would be located too close to each other.

Residents living on the upper floors of the proposed condominiums might suffer "unacceptable levels of odour" from a nearby rubber recycling plant.

The report also notes that the project "could result in an unsafe and inappropriate living environment."

6 Lloyd Avenue, just south of St. Clair near Keele. (Google Maps) Developer Louie Santaguida heads up Stanton Renaissance. He told CBC News that the project would create jobs and that the property "is a prime candidate for re-development" and "has incredible potential based upon our proposed plans."

He also said he is working to address the concerns of city planners.

Santaguida has owned the land at 6 Lloyd Ave. since 2004. He made a similar proposal for the site in 2005, and was denied by the Ontario Municipal Board (OMB).

The OMB ruled back then that the plan "would not produce a liveable environment" for future residents "who would be forced to keep their windows closed" in order to mitigate odours.

The 3-acre property has now been empty for a decade. Littered with garbage, the derelict site has become a source of frustration for neighbours living in two-storey homes along the street.

Resident David Telford told CBC News that he thinks it's time something was put on the site. "It's been like that for years now," he said. "And that big spoil heap just keeps moving about the site."

In response to CBC News questions, local Councillor Frances Nunziata said the area is in need of revitalization and that the proposal is "widely supported by the community.

She said that the plan wasn't final and that "Concerns regarding height and the buildings [sic] proximity to one another" could be dealt with after the current application is approved.But in order to get that approval, city council would have to vote against the recommendations of city staff.

Sources told CBC News that lobbyists operating on behalf of the developer have been working hard behind the scenes to build support among councillors for the project.

City council was supposed to vote on the issue earlier this month, but Councillor Cesar Palacio, who backs the plan, stood up during a session at City Hall and asked for a deferral on the vote.

Coun. Palacio didn't respond to multiple requests for comment, but Councillor Frances Nunziata told CBC News that the item was held in order to "provide the opportunity for staff from City Planning to meet with the [developer] in hopes of resolving their concerns with the proposal."

One councillor, who spoke to CBC News on the condition of anonymity, said she ddi an informal poll and believes the proposal would have been defeated had a vote taken place.

Etobicoke York Community Council approved project

But the development has already passed the first step toward approval.

Etobicoke York Community Council (EYCC) has to approve a project before it goes to a final vote at City Hall.

In February, members of the council, which is made up of local councillors including Nunziata and Palacio, voted to recommend that Toronto City Council allow the development to go ahead despite the staff recommendation to reject it.

Ward 3 Councillor Stephen Holyday was the lone person to vote against it.

He told CBC News, "I felt it very important to give high consideration to what [city staff] had to say, given the subject matter relates to health and safety and successful development, which is a very permanent thing."

A video recording of the meeting shows Councillor Sarah Doucette initially expressed concern over the height, density and lack of opening windows in the proposal.

In the end, she voted to support it. So did Deputy Mayor Vincent Crisanti, and Councillors Frances Nunziata, Frank Di Giorgio, Mark Grimes, Cesar Palacio and Giorgio Mammoliti.

EYCC Councillors John Campbell, Justin Di Ciano and Rob Ford were absent for the vote.

At one point during the meeting, Coun. Mammoliti appeared to berate a city planner who recommended against the Lloyd Ave. project.

He asked, "Why aren't we working with our partners [developers] in making applications work, instead of saying no?"

According to a report from the city's Integrity Commissioner, a company associated with Santaguida contributed at least $10,000 to a 2013 fundraiser held for Coun. Mammoliti.

The report alleged a number of invoices for donations were later changed in an attempt to conceal the nature of the payments, including the $10 000. The report does not say who asked for any changes.

The fundraiser was deemed "improper" and Coun. Mammoliti was docked the maximum three months pay as a penalty for breaching council's code of conduct by accepting $80,000 from the fundraiser. He has refused to return the $80,000.

City council formally asked the Toronto Police Service to investigate the fundraiser.

Santaguida denied making a contribution to Coun. Mammoliti in that way.

When asked about the report, Santaguida said, "I have provided relevant documentation to the Lobbyist Registry for the City of Toronto. Any donations are a matter of public record. I have not made a contribution to Councillor Mammoliti as you have suggested."

Coun. Mammoliti did not respond to multiple requests for comment.

Earlier this month, CBC News reported on another of Santaguida's developments, now underway at 327 Royal York Rd.

Several EYCC members appeared alongside Santaguida in a video showing the 2014 groundbreaking ceremony for that development, including Frances Nunziata, Vincent Crisanti, and the local councillor, Mark Grimes.

Coun. Nunziata's office said in an email that they were not aware of the video, or of the councillor's appearance in it. The email said she was present at the groundbreaking ceremony "in her capacity (at the time) as Vice-Chair of Etobicoke York Community Council."

If you have any information about this or other stories, please contact our investigative unit: John Lancaster john.lancaster@cbc.ca (416-205-7538) and Sarah Bridge sarah.bridge@cbc.ca (416-205-5511)