I've spent a lot of time looking at that alleyway photo [yes, I'm a TOTAL loser, I know]. Anyway, judging by the location of the City Hall tower, that alley is likely to be located in the [former] James-Market-MacNab-King block.
This photo was taken from the tower looking down at the approximate location of the alleyway.
Just another example of what we've lost trying to 'revitalise' our city.