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The Duck's Building development is a proposal to build a six-storey, 137-room hotel with ground floor retail space. The project will incorporate a heritage-restored Duck's Building (built in 1892) at 1314-1324 Broad Street, a replacement of the Canada Hotel at 615-625 Johnson Street and a new-build portion on a surface parking lot south of the Duck's Building.
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I have absolutely no idea where the Yates Street works yard was.
I am going to go out on a limb here and say it was somewhere on Yates Street.
Hang on. Maybe you're thinking of the former city works yard located on the south side of Yates Street between Blanshard and Quadra Streets?
Daily Colonist
April 2, 1949Sales of city-owned lots approved yesterday by city council totaled $21,552.50Included in the latter four was the former city works yard located on the south side of Yates Street between Blanshard and Quadra Streets.
FYI: the resistance to selling those Northern Junk traffic islands is indefensible. Back in the day property changed hands like crazy, back and forth between private ownership and government ownership. It was never anything unusual or exceptional. Countless transactions. And it continues today in the form of the motel acquisitions, etc.
But we're supposed to believe it was some sort of heroic stand to resist selling off that otherwise useless bit of property for Northern Junk.

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Proposal for 137-room Broad Street hotel to include bee habitat, car elevator
137-room hotel will span across three properties, including two heritage buildings at 1312 Broad Street and 615 Johnson Street.

UVic-partnered Broad Street condo and rental complex transitions into hotel proposal
A nearly 170-unit condominium and rental project along the 1300-block of Broad Street is shifting gears in pursuit of approvals as a hotel.