the fact that buildings like this are getting demolished and replaced but the 2 storey houses directly behind it are sacrosanct is a crime against this planet.
I don't think the homes behind it need to be sacrosanct, and I will wager they won't be within a few years.
Now, that said, I love the character of that little section of St. Nicholas with the intimate scale.
I would want to see that preserved; and indeed, I hope in this proposal, it will be extended (with towers above, but with the illusion of intimately scaled homes at street level on that side of the site.)
In looking at the aerial of the homes to the south.
There is a challenge to do with separation distances:
But I believe it can managed.
As the existing homes in this block are not heritage, they can all be cleared, but the illusion of their scale can be replicated along St.Nicholas.
The footprint would look something like this:
The remainder of the site could actually be a very functional 7,000ft 2 intimate park space.