That somebody local built it, I'll agree with. That it's remotely controlled, sure. That it's a child's toy? Something of a stretch. If it is a toy, I've never seen one of these for sale at FAO Schwartz.
And I'm not seeing a propeller on it, either. I wonder how it's staying up there...
Article here.
That is one of the more interesting questions. I think maybe some variant on a ducted fan?
If I'm wrong it could be even more interesting!
YOu can easily modify existing toys and put a different “body” on them leaving the rest of it intact.