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Noun 1 + をめぐる + Noun 2

I think this grammar point needs more explanation. As it is it looks the same as について or に関する but there is an emphasis on a point of contention with をめぐって. It is used to draw focus to the subject of an argument, debate, conflict, etc. Perhaps a better way to define it would be to say (The argument, debate, conflict etc) is about...

In the third example, since されている the passive tense is used, shouldn't the translation be "the necessity of the new building is being discussed" instead of "they are discussing"

I think the highlighting for two of the example sentences might be a bit off in the English translations.

For : "The theme for next month's school arts festival was debated among the student council for a whole week."

I think only "The theme" should be highlighted (not "among")

For: "At the city hall meeting, the necessity of the new building is being discussed."

I think "the necessity" should be highlighted (not "the new")