The question was never about demolishing and rebuilding.  It was whether to imitate the style of the old building as such or to  design in the so called 'modern' style and how to place the extensions. The answer was neither, as exemplified by the final design (some what different from what is suggested in the newspaper review).

A harmonizing design solution was achieved by carefully extending the character of the existing building profile, use of materials, color scheme and treatment. Round arches were used in the extension but the tall proportion of the openings were not followed (The old building is two storeys of height, 6 meters each, the new one three storeys of 4 meter each each to accommodate the space requirements while matching the height). An overhead water tank carefully detailed, plays the role of the transposed spire, but with a truncated pyramid cap. 

The result appears to be harmonious with the focus on the old building and I think the image of the old building as landmark improved as a result. The renewed landscaping and realigned approach also helped.