One reason to save the Payless facade is to get the architect to think a bit about street wall and context (something the rendering shows zero regard for). This design really does not try to fit into DTX context at all.
I agree wholeheartedly about the other buildings though.
Context is important, and I agree that this design doesn't conform to the vernacular, but I'll venture the CBA of facade preservation has proven it's a very expensive gesture with little tangible benefits.
I believe a dynamic street features dynamic street walls, so this outlier could enrich the streetscape.