When urban redevelopment clashes with poverty

The downside to redevelopment: unsightly or undesirable buildings and tenants. A developer in LA wants to refurbish a luxury hotel in Skid Row, while just down the street there is a government-subsidized hotel for the homeless. Getting rid of that particular hotel would put many men back on the street, while keeping it might not attract new tenants and business needed to reinvigorate Skid Row. Isn't there room for both?