The buildings directly across Virginia Street were very directly threatened by demolition, especially after a devastating fire, but have recently been renovated and rebranded as Granite Works. In early 2000, the Church of Scientology was kicked out of its long time downtown home to make room for a new parking garage. The Church decided to stay in a central location and bought the Catholic Institute building for their new headquarters. After a major and spectacular renovation the building was reopened in 2003 as the Main Church of Scientology in Buffalo. This amazing building, plus the renovated Granite Works buildings, now create a wonderful gateway to Allentown at this intersection. Sure beats a couple new parking lots doesn't it?
[Update] as a commenter below notes, it seems I gave a bit too much credit to the Scientologists for this renovation. The building was (at least partially ) restored by Wrenkroy Development back in 1993. It was then occupied by some departments of Roswell Park Institute for 5 years during the hospital's reconstruction project. I assume that soon after the Roswell group left the Scientologitsts took over the building and modified it for their purposes.