https://www.google.com/maps/@37.4142855,-122.129379,3a,75y,2...
You can't just drop a 40 story building onto a residential street, even apart from it being illegal due to city ordinances. The infrastructure is not here (and you can't build it in 19 days). If somehow you got it built it would only make everyone miserable. This street already gets kind of whack during the school year since it terminates at Gunn High School (which I guess they would simply make twice as big).
Second of all -- cut a deal with who? Not just Buena Vista residents, the whole city. Nobody wants that. A developer would have to be insane to even try.
A few years back in a nearby neighborhood they tried to replace a community orchard with new housing. Not even displacing people, just trying to develop affordable housing on top of peoples' PLANTS. It was pushed to a referendum and Palo Alto residents rejected it. The developer had already bought the land and had to sell it.