Finally, here are possible development sites marked--yellow are surface parking lots, green have buildings that could potentially be demolished (there is only one historic building in a green zone, across from the AAA on Baum, and I included it to make that a decent-sized parcel):
Note all the sites have access from outside the woonerf zone. You'd probably want at least one of those sites to include a multi-level parking structure, to replace the surface parking and support local uses (e.g., valet parking for the Ace Hotel). But generally, you'd mostly have a free hand to utilize the new district appropriately. Fortunately the Ace Hotel and library already look decent from the direction of the new park. The only modest exception is the historic buildings along Baum around the corner from the library, and even those are kinda interesting from the rear.