^I'll echo that: "what height??"
Now, this is all rough guesstimations based off a rendering and some Google Streetviewing, but if you're to compare the height of the new addition to the old Royal Bank Building on the corner, then use that as a reference to the height of other extant buildings on the Whyte, there's not much of a difference. To me it looks like this wouldn't be more than a half, to three-quarters floor taller than the Tipton or Hulbert, or Richards or Douglas Blocks nearby, all of which are about three-and-a-half storeys, plus parapets. And that's without even mentioning that on the same block the Raymond Block was just built which is way bigger than this would ever be.
Honestly, it just screams of a flimsy excuse looking to justify something they don't want.