It seems to me that the developer went into this project with the ultimate goal of selling a certain number of units -- if they had not been able to reach that number, they probably would not have bothered with it at all, leaving the historic district to continue to decay -- and to build that number with low/mid-rise buildings would have required such a large footprint that much of the historic district would have had to be demolished to make room (remember, they can only build on land they own). Instead, by going tall, they restricted the footprint to three point towers with podiums, keeping the demolition to a minimum.
There were three options:
1) Do nothing, and allow the historic district to continue deteriorating.
2) Renovate, and add a large number of low/mid-rise condos, demolishing much of the historic district to make room.
3) Renovate, and add three point towers, demolishing a much smaller portion of the historic district.
To me, they made the right choice.