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A divided Escondido City Council has approved the 510-unit Palomar Heights project, a development that will replace the former Palomar Hospital campus with a mix of housing types and commercial uses advocates say will spur revitalization of the city’s downtown corridor. The project was approved last week on a 3-2 vote, with council members Mike Morasco, Tina Inscoe and Joe Garcia in favor, and Mayor Paul McNamara and Councilwoman Consuelo Martinez voting no. By the same margin, the council voted to exempt the project from a requirement to join the city’s Community Facilities District, a mechanism established by the council last year to recover the costs of providing city services to new developments. ....