Possibly some good news: There's a good chance that Tory will push for — and City Council will approve — up to $10M in this and next year's budgets to finish some of the cut items to begin work in the Fall after the PanAm Games have left town. The reinstated items: the ceremonial ramp, the walkways, the PATH entrance on Queen St. and the Bay St. edge. Tory is embarrassed about this and has taken a special interest in getting Nathan Phillips Square finished.
The Sheraton bridge is likely to remain in limbo until it gets into a state of disrepair that the city will have to just bight the cost and take it down itself without the Sheraton's cooperation.
If I were to guess, the restaurant won't be done for a decade or more. It's not essential to the project and no business is going to approve of such a high capital cost to build a restaurant. Maybe it'll get revisited some time in the future but my guess is that it's dead.