Last week I took photos of the site. The development itself would go up to the yellow house in this picture:
Looking Southeast, with Park Vic in the background:
It's too bad that these houses will be torn down since they're not in particularly bad shape but I think this is an example of a trade-off that is justified. Some holes will be filled and a new 19 storey building would be more along the lines of other buildings in the area like the Lord Nelson, Paramount, etc.