In a fine example of the problem with our current zoning standards, commenter Graeme has posted this notice of a possible demolition of a historic structure for a parking lot, as well as this long IHP report. The zoning standards sadly encourage this.
Fortunately, there looks to be a compromise solution to reconfigure a current parking lot, which could provide more spaces than the lot currently provides. The oblique aerial photograph on page 31 of the staff report shows that there is quite a large parking lot already at the facility, so this may be possible. However, that compromise solution will not always work for every problem such as this. Zoning will continue to encourage sprawl-styled development and discourage human-scaled urban development until the laws are changed. Of course, I don’t see that happening anytime soon.