Someone from Eagle called me back, and we had an interesting discussion. I must say, I've been very pleased with how friendly the folks there have been, and how willing they've been to discuss this. Here's a basic summary of the big points the man told me:
1. This is just an important distinction that since they're not the developer, they don't have control over these decisions. I hadn't thought about that before, so I thought I'd pass it on just for you to keep in mind.
2. Lots of different avenues of preservation were looked at, including wrapping the building around one of the historical ones. Since it's a low-rise project though, that'd entail a loss of ~19% of the residential units.
3. The developer did not submit any formal applications to rezone the land for a high-rise tower. If such a tower were constructed on the south portion of the land, he said that the other historic building might have been converted into more housing units. He also mentioned that he didn't know if residents would even want a high rise on that land. When he said that, I maaayyyyy or may not have told him about this site, and that it was a good place to see what some "more informed" folks think. He just let me know that he read through this thread, so if he reads this post, I encourage him to make an account and join in the discussion haha
4. They'll try to preserve as many bricks as they can (some will inevitably disintegrate during demolition), and the preserved bricks will be put on one of the south-facing corners (I think southwest). They'll also be used on a cafe/coffee shop if there's demand for such a business.
So overall, my position on this has slid a bit. I get where Eagle is coming from; they're in a tough spot since they have no control over the zoning of the land. I really wish that the developer would have pursued a rezoning application. It's relatively close to the LRT and right by Macewan, so I think it's prime real estate for a high-rise building. I agree with
@Mattyeg that we also need some mid-rise development in the city, but I'd prefer that it be a bit further out and away, since this is so close to mass transit and a university.