It's looking like Anaheim voters will determine whether that controverisal development in the city's resort district goes up. The City Council early this morning voted 3-2 to approve the 1,500-unit project (including 225 low-cost units) near Disneyland and California Adventure. When the vote first came up a couple of months back, the council was deadlocked 2-2. Since then, the Mouse House has sued the city to block the development - and apparently has enough signatures to launch a citywide referendum. A Disney statement said, "We intend to work in coalition with community leaders, tourist officials and business leaders to insure the voters of Anaheim have the opportunity to decide whether the Anaheim resort area should be preserved." From the LAT:

In a new argument Tuesday, Disney officials provided city officials with an inches-thick packet asserting that the residential project would exacerbate global warming because of the traffic it would generate. The city and Disney have enjoyed a relatively cozy, fight-free relationship for 50 years, but the housing debate has created friction in town. Some argue the resort district, which sends the city millions in tax revenue, should be dedicated exclusively to tourism; others say there is a pressing need for working-class housing in the area.