To be fair, it had nothing to do with the Provincial government. Kerfoot needed a parcel of land owned by Ports Canada, a federal agency. He offered a land swap which they didn't like so it ended there.
In terms of grass fields, again, I wouldn't go blaming Pavco as there's not many covered stadiums with real grass, especially in the northern hemisphere. The Jays want to do it, but they need an artificial light system, which is very costly. University of Phoenix Stadium has real grass, but only because the field can be moved outdoors when not in use.