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A recently proposed temporary live music venue raised concerns around negative impacts that might be felt by the nearby community.
The city of Irvine purchased the property from All American Asphalt for $285 million and it will become part of a preserve.
The council voted 3-2 on Tuesday to move forward on the aquatics center, which will have USA Water Polo as a primary tenant, in phase one of its framework plan.
Employees in Teamsters Local 396 have been on strike for at least a week.
The developer, Brookfield Homes, plans to build an 85-unit residential project.