2 Spadina is 1.4KM from the 'Garage', which is on Stadium Road. It's where some of us rent parking spaces and work on bikes. Tony is doing a winter storage deal down there that you might get in on, or you can probably rent a whole spot for your bike / truck etc.
Apartments are plentiful in the area but might be hard to find vacant. Kensington Market is a popular spot, just up the road off Spadina and there's a streetcar that runs up/down Spadina. Kensington is less than 2KM from the job site.
A little further north you run into the University crowd going to U of T. Spadina & Bloor is in the heart of the Annex neighborhood, where I first lived when I moved to Toronto 17 years ago. Expensive rents but a great spot to live. Lots of 20 year old students milling about.
Queen West is another popular area - you'll find potentially some good spots to rent in the Western most end, getting into a 'hood called Parkdale. It doesn't have the best reputation, but is quickly being taken over by people buying homes, renovating, and making apartments in them to help pay the mortgage.
Roncesvalles Village, marked on the map, is an awesome area. I'd move there in a heartbeat.
King West has also been overhauled in the last 10 years into tons of condos / townhomes probably with lots of rental opportunities. Liberty Village is one of the newly constructed neighborhoods along King West that is chock full of new construction and all the amenities that go with it - coffee shops, grocery stores, blockbusters etc. and streetcars along King going East/West (horrible service though, just like along Queen - very congested transit).
Here's a map with a boundry drawn around an area I'd be looking in for rentals. Good access to your jobsite, and the Gardiner Expressway which turns into the QEW, which you'd use to get out to Hurontario.
C on the map is the 'Garage'. I live up just West of D on the map. A is Kensington Market.
To get from D to B, your jobsite on transit would take the better part of 30 minutes. If you can stick to the Subway lines, you'll have faster service and it's all underground so it's sheltered. It runs North/South under Spadina Ave, and the other line runs East / West along Bloor St. Transfers from one line to the other happen at Bloor/Spadina and Bloor/Yonge.
Ask lots of questions - we all have our favorite spots in Toronto.
Oh, and the Black Dice Cafe is at Dundas St West & Sheridan - right in the middle (kinda) of the area I've marked off
http://maps.google.com/maps?f=d&source=s_d&saddr=Kensington+Ave&daddr=2+Spadina+Ave,+Toronto,+ON,+Canada+to:Stadium+Rd+to
arkside+Dr+to
undas+St+W+to:43.674328,-79.408751+to:kensington+ave&hl=en&geocode=FZAamgIdbnJE-w%3BFXTjmQIdtI9E-ymtiqbrJzUriDFBsxO90bquUw%3BFRLMmQId3nRE-w%3BFRgAmgIdrpRD-w%3BFQtImgId_HdD-w%3B%3BFcYamgIdV3JE-ynp6bFTwjQriDE-SNrX3QG7tA&mra=dpe&mrcr=3&mrsp=5&sz=14&via=3,5&sll=43.661601,-79.440765&sspn=0.049053,0.104971&ie=UTF8&ll=43.65359,-79.423943&spn=0.04906,0.104971&z=14