I'm not sure the Queens United folks have their facts right.
I went to the DOB website and there is no evidence that the project is not going forward. There is a filing showing that the contractor has been fined $2400 and is in violation of DOB rules due to creating excessive debris at the site. The contractor has been ordered to rectify the matter.
With regard to "big box" stores, Target and other retailers are opening stores throughout the U.S. that are of a variety of sizes. Some are the standard massive big box stores like you might see in the suburbs. Others aren't. Target, for one, has been creating smaller stores for urban markets...so to say that Target will be prohibited from building there is incorrect. I don't see anything in the zoning that prohibits Target. Based on the renderings that have been submitted by their architects it looks like they are planning three floors of commercial. Maybe that's a big box, maybe not.
Personally, I don't think that's a great site for any large development whether it be an office building, apartments or a multi-story retailer. That street is already a disaster.
That said, I don't see why there is such opposition to a Target. The neighborhood needs better stores that offer a variety of merchandise at reasonable prices. Target has a pretty good selection and pretty good prices. But if you disagree you're free to shop elsewhere.