Now that I had a second look it sounds like you're right.
Here's a recent photo of the site. The building does not look dramatically different but it does look a bit better:
http://www.flickr.com/photos/73203333@N05/7216695248/sizes/l/in/photostream/
2009 (note the flaking paint on the dormers):
http://www.flickr.com/photos/annspan/3889986683/sizes/l/in/photostream/
I'm happy they didn't try to tear down the property. It's a nice heritage house and complements the church.