While I can't explain all of your concerns with this project, I can confirm that it is set so far back from the street because of the 5.182m bylaw setback for Edmonton Trail. All new projects, between 16th Ave and 5th Avenue, are required to be this far back from their property line. It was originally intended to allow for two additional lanes of traffic to be built, but since the CTP that is no longer going to happen.
Unfortunately, the City hasn't articulated a clear plan on what to do with the setback area, nor have they confirmed they no longer need it, so all projects on streets with these setbacks will continue to be pushed back from the street, with usually a dead lawn space all that is allowed in between.