The correct answer to this open question is the following.
I think that it all depends on what is the priority of the local government. To preserve the culture and history of the place or to promote economic development and the creation of jobs.
It is a matter of establishing priorities. Probably, the creation of jobs and the development of the local economy could represent more attractive benefits for the place. And that is understandable. Nowadays, private investment is more need to reactivate the economy.
Furthermore, it is a matter of money, and the material benefit will always be much more attractive than arts and culture.
However, there could be a third option that has been very successful in other countries such as México, which has many colonial towns with a lot of murals and works of art.
What they have done in México is to welcome the development of new commercial and business places such as malls or offices, but instead of destroying the murals, they hire an art curator to remove the piece while constructing the new building. When finished, they put the piece of work back and it serves as an extra attraction to the new place.
So Mexican authorities welcome private investors and new projects but they have to maintain the artworks, covering their restoration.