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Comments
You will not gold back if you demolish it
I do think the Water Tower is the best use of your gold but do consider keeping at least the one blue barn and build it up slowly as you get gold
The huge difference in capacity will make events much easier
The regular barn upgrades use farm dollars compared to the gold used for the spacious barn upgrades. I have two spacious barns and have managed to get them to level 8 without ever making any in-game purchases, but the upgrade cost is now 59,000 gold per spacious barn to get one of them to level 9. I would recommend that you can probably just upgrade the regular one with farm dollars and decide later on if you want to pursue the spacious barns when you can see how much gold you can collect from events at a higher level.
Happy New Year to you as well!