Also let's say you need a new performing arts center (or athletic facility). The old one is too small, leaks and you can't flush the toilets at the same time during intermission due to plumbing inadaquacy.

You have to (want to) build a new one. Do you deliberately build a bad one? Do you save the old 1970 light board and toilets that didn't work? No you build the best you can hopefully to last you another 50 years. Maybe you save the old building and repurpose it. Maybe you turn it into a parking lot.