Hey there, time traveller!
This article was published 9/7/2012 (1510 days ago), so information in it may no longer be current.
"Bridge over troubled yards," the sub-headline over your July 7 story about relocating the CP rail yards, The right track for renewal?, might suggest the solution. Don't relocate the yards; build over them. Or at least over portions of them.
Many cities in North America have undertaken significant urban renewal by reviewing all their options. An example was "the big dig" in downtown Boston, where a major roadway was moved underground and the city built over it.
In this situation, we are not going to move the railway tracks underground. But why not build a huge platform above the tracks and construct housing, parks, light-industrial-use structures above it?