I wonder if the Church can't make this work to their advantage. Being next to a hotel with condos and shops could increase their attendance on Sundays. Whenever I am visiting other places, one of the first things I check out is where I can go to Mass. Some of these urban churches could potentially benefit from the arrangement. I do not condone the use of eminent domain for this purpose however.
Around here, if you don't have a functional Sunday School, you will not have a church for long. This project will make the Sunday School untenable. After that, it is just a matter of time before the congregation fails.
Then the developer will be able to pick up the rest of the property for a song!