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Wood - replacing sill plate of bearing shear walls

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Have anyone ever replaced the sill plate of an exterior bearing shear
wall? It's a 10 years old multi-unit apartment building with water
damage in some nonbearing and bearing wall's sill plate and rusted
anchor bolts. I have the following options:

1.  Temporarily shore the bearing shearwall, remove and replace the
damaged sill plate with 3x plate and new Hilti-HSL bolts, add plywood
sheathing at the inside face of the wall.  This option could be

2.  Cut sill plate between bearing studs and install new 3x plates with
new studs nailed to existing studs and add hilti-HSL bolts. The new
sheathings will be nailed to the new sill plate pieces and the new
studs.  This option seems to be cheaper and avoid temporary shoring. 
Note that there are 3 stories on top of this wall and fully occupied.

I would appreciate if anyone can provide comment, Thanks.
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