I think the discussion of churches veered off a bit. Let me give you another local example.
This is a protected residential historic district here in Pittsburgh - Schenley Farms in Oakland. The houses are protected from zoning from subdivision. The houses are protected from demolition or remuddling via the historic district. The area has developed into a wealthy little enclave - the only house currently on the market is pending, and the asking price was $1.7 million, though smaller houses there can go more in the $600,000-$700,000 range (which is still very expensive for Pittsburgh).
The issue is, although it's uniquely remained a nice residential area in Oakland (which has otherwise turned into student slum)
it's directly next to the University of Pittsburgh's upper campus.
Some of the houses are directly across the street from a new midrise office building.
Just two blocks away is a district occupied by mostly midrise apartment buildings.
Historically it was a popular area for professors (who could walk to work) but as real estate prices have escalated, it's become largely out of the reach of younger faculty. In effect the city is protecting the interests of about 150 rich families. The houses are handsome early 20th century architecture, but is that really the best use when the area is surrounded by a major university, office space, and multi-family housing?