If this goes ahead as proposed, I will be flabbergasted. Council spent a lot of political capital on implementing bike lanes on Shelbourne, ostensibly to move toward the Shelbourne Valley Action Plan vision of making Shelbourne a "people place" instead of a traffic sewer. If they let this proposal go ahead as-is, that political capital will be wasted, at least in this section of the street.
Like Uptown, this proposal abandons its surrounding streets in favour of a private, internal street, which will suck commercial activity away from Shelbourne into the interior of the development (as the developer and their tenants prefer). With the focus on the internal street, this will likely leave the units on Shelbourne with reduced foot traffic and marginal tenants as a result... the upshot of which will be that no one will care if this section of Shelbourne remains a traffic sewer.
If Saanich is serious about making Shelbourne a community hub with a priority on non-vehicle users, then a UH redevelopment needs to enrich its surround streets, not abandon them.