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The Most Impossible Rise of a City Ever: Irvine, California — Transcript

by Paul McAllister · 5,545 words · 891 segments · language en · Watch on YouTube

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  1. 0:00In the winter of 1864, an Irish
  2. 0:02immigrant named James Irvine paid
  3. 0:05$18,000 for 49,000 acres of Southern
  4. 0:09California. That land, dry, covered in
  5. 0:12dying cattle, most of it cactus and wild
  6. 0:15grass, cost him roughly 37 cents an
  7. 0:18acre. Today, that same ground is
  8. 0:21controlled by a single man whose net
  9. 0:24worth exceeds $18 billion.
  10. 0:27Which means the value of what James
  11. 0:29Irvine bought has multiplied not by 10,
  12. 0:32not by a hundred, not by a thousand, but
  13. 0:36by something closer to 450,000.
  14. 0:40No stock, no bond, no barrel of oil, no
  15. 0:44ounce of gold has ever produced a return
  16. 0:46like that. And the strangest part isn't
  17. 0:49the number. It's that nobody, not
  18. 0:52Irvine, not his son, not his grandson,
  19. 0:55not anyone who ever held this land, ever
  20. 0:59intended to build a city on it. The city
  21. 1:02of Irvine, California, exists because of
  22. 1:05a drought, a death nobody believes was a
  23. 1:08suicide, a thousand acres sold for $1,
  24. 1:12and a man who once failed to qualify for
  25. 1:15the Olympic ski team.
  26. 1:17None of that sounds like it should
  27. 1:19produce the safest large city in
  28. 1:21America, but it did. Start with the
  29. 1:24drought because that's where everything
  30. 1:26starts. In 1862 and 1863, California was
  31. 1:30hit with a dry spell that killed an
  32. 1:32estimated 800,000 head of cattle across
  33. 1:35the southern half of the state. The old
  34. 1:37rancho families, the Sepovas, the
  35. 1:40Yorbas, the descendants of Spanish and
  36. 1:42Mexican land grants watched their herds
  37. 1:44collapse and their wealth evaporate.
  38. 1:47They needed cash. They needed it fast.
  39. 1:50And waiting in San Francisco was James
  40. 1:52Irvine, a man who had come to California
  41. 1:55in 1849 during the gold rush, worked the
  42. 1:58mines, worked a grocery business, and
  43. 2:01learned the first lesson of California
  44. 2:03wealth. You don't get rich pulling
  45. 2:05things out of the ground. You get rich
  46. 2:07owning the ground itself. Irvine and
  47. 2:10three partners, Benjamin and Thomas
  48. 2:12Flint and their cousin Llewellyn Bixby,
  49. 2:14moved quickly. They bought the Rancho
  50. 2:17Sanwaqin, nearly 49,000 acres from the
  51. 2:20desperate Andre Sapulva for $18,000.
  52. 2:25Two years later in 1866 they picked up
  53. 2:28the Rancho Lomas de Santiago another
  54. 2:3147,000 acres from the estate of William
  55. 2:34Wolfskill for $7,000.
  56. 2:37Then in 1868 a court judgment handed
  57. 2:41them 4,000 more acres of the Rancho
  58. 2:44Santiago de Santa Ana. In four years,
  59. 2:47for a total investment of roughly
  60. 2:49$40,000,
  61. 2:51these four men had assembled $108,000
  62. 2:55acres of contiguous Southern California
  63. 2:58land stretching from the Santa Ana
  64. 3:00Mountains to the Pacific Ocean. It was
  65. 3:03nearly a third of what would eventually
  66. 3:05become Orange County.
  67. 3:08And here's the fact that explains
  68. 3:10everything that follows. It was all one
  69. 3:14piece. Not scattered parcels, not
  70. 3:17separate investments, one unbroken
  71. 3:20expanse of earth [music] held by one
  72. 3:23group, answerable to no one else. That
  73. 3:27single fact that the land stayed whole
  74. 3:30is the reason a city called Irvine
  75. 3:33exists today instead of another 20 m of
  76. 3:36freeway exits and strip malls. In 1876,
  77. 3:41Irvine bought out the Flints and Bixby,
  78. 3:43becoming the sole owner. He ran sheep
  79. 3:46mostly. It was a plain operation on
  80. 3:48extraordinary land. When he died in
  81. 3:511886, his son, James Irvine II,
  82. 3:54inherited the entire ranch at the age of
  83. 3:5719.
  84. 3:58There's a detail about James II that I
  85. 4:01love because it tells you something
  86. 4:02about the era and about the man. Shortly
  87. 4:05after learning he'd inherited a 100,000
  88. 4:08acres of Southern California, he and a
  89. 4:10friend climbed onto high-wheel bicycles
  90. 4:12in San Francisco and rode them all the
  91. 4:15way down to Orange County to inspect the
  92. 4:17property. That's roughly 450 m on a
  93. 4:21penny farthing. He arrived, looked at
  94. 4:24his inheritance, and then did something
  95. 4:26that would define the ranch for the next
  96. 4:2860 years. He diversified. [music]
  97. 4:31He planted. He turned the Irvine ranch
  98. 4:33from a sheep operation into one of the
  99. 4:36largest agricultural enterprises in
  100. 4:38California. Grains, vegetables, lima
  101. 4:41beans, citrus groves, walnuts, miles and
  102. 4:45miles of lima beans. Actually, row after
  103. 4:48row of them, flat and green across the
  104. 4:50coastal plane. So many acres of lima
  105. 4:53beans that the region became known as a
  106. 4:56national center for them. And in 1894,
  107. 4:59he incorporated the whole thing as the
  108. 5:02Irvine Company. Think about what James
  109. 5:05Irvine II did not do. He did not sell.
  110. 5:09As Los Angeles exploded northward and
  111. 5:12westward through the early 20th century,
  112. 5:14as Orange County started to fill in
  113. 5:16around the edges, as developers came
  114. 5:18calling with bigger and bigger offers,
  115. 5:20James II held. This is the defining act
  116. 5:24of the Irvine story. Not building, but
  117. 5:27waiting. While his neighbors sold off
  118. 5:30parcels to subdividers and watched their
  119. 5:32ranchos dissolve into tracked housing,
  120. 5:34James II poured money back into the
  121. 5:37land. He built a dam in 1929 and created
  122. 5:41Irvine Lake, anchoring a sophisticated
  123. 5:43irrigation system that turned formerly
  124. 5:46dry acreage into productive soil. He
  125. 5:49planted citrus orchards that produced
  126. 5:51revenue year after year. He donated 300
  127. 5:54acres for a public park in 1897, the
  128. 5:57first regional park in Orange County. A
  129. 6:00gift that signaled something unusual
  130. 6:02about the way this family thought about
  131. 6:04land. They weren't just sitting on it.
  132. 6:07They were investing in the idea that
  133. 6:09wholeness itself had value, that the
  134. 6:12ranch intact was worth more than the sum
  135. 6:15of its sold off parts. It was a
  136. 6:18contrarian bet, and for decades it
  137. 6:20looked like a foolish one. By the 1930s,
  138. 6:23the ranch was producing lima beans,
  139. 6:26Valencia oranges, avocados, walnuts,
  140. 6:29barley, and cattle. It employed hundreds
  141. 6:32of workers who lived in bunk houses and
  142. 6:34company housing along what was called
  143. 6:37Foreman's Row. There was a warehouse by
  144. 6:40the railroad tracks, a small post
  145. 6:42office, a scattering of structures that
  146. 6:44constituted the town of Irvine. not a
  147. 6:48city, barely a settlement, more like a
  148. 6:50company camp. In 1937, as if to ensure
  149. 6:55that his philosophy of holding would
  150. 6:57outlast him, James II created the James
  151. 7:01Irvine Foundation and transferred 51% of
  152. 7:05the company's stock into it. The
  153. 7:07foundation's charter directed that
  154. 7:09proceeds be devoted to charitable
  155. 7:11purposes in California. When James II
  156. 7:15died in 1947 at the age of 80, his
  157. 7:18bequest to the foundation was valued at
  158. 7:21$5.6 million.
  159. 7:24The ranch was intact. The land was whole
  160. 7:28and nobody was building houses on it.
  161. 7:31His son, Meifford Irvine, took over as
  162. 7:33president. And here is where the story
  163. 7:36cracks open. Myford was born in 1898. He
  164. 7:40married, divorced, remarried. He had a
  165. 7:42daughter. By most accounts, he was a
  166. 7:44quieter man than his father, less
  167. 7:46consumed by the ranch, but dutiful
  168. 7:48enough to run it. And then on January
  169. 7:5111th, 1959, Meifford Irvine was found
  170. 7:55dead in the basement of his ranch home.
  171. 7:57The coroner ruled it suicide. The
  172. 8:00details of that ruling remained, to put
  173. 8:02it carefully, contested. Myford had been
  174. 8:05shot three times. Twice in the abdomen
  175. 8:08with a 16 gauge shotgun. Once in the
  176. 8:11temple with a 22 caliber revolver. He
  177. 8:14was right-handed. The shots appeared to
  178. 8:16have been fired with his left hand. Two
  179. 8:18different weapons, three wounds, and the
  180. 8:21dominant hand unused. The coroner's
  181. 8:24verdict stands to this day, but members
  182. 8:26of the Irvine family have publicly
  183. 8:28doubted it for decades. No one has ever
  184. 8:32been charged with anything. The case has
  185. 8:34never been reopened. Whatever the truth,
  186. 8:37Mifford's death in January 1959 removed
  187. 8:40the last member of the Irvine bloodline
  188. 8:43who might have resisted what happened
  189. 8:44next. Because 9 months later, the
  190. 8:47University of California came looking
  191. 8:49for land. The timing is uncanny. In
  192. 8:531957, the UC regents had authorized the
  193. 8:56creation of a new campus in Southern
  194. 8:58California, and they'd hired an
  195. 9:00architect named William Pereira to scout
  196. 9:02locations. Pereira was not an ordinary
  197. 9:05architect. He'd helped design the 1933
  198. 9:08Chicago World's Fair. He'd built movie
  199. 9:10theaters and sanitariums and research
  200. 9:12labs. He'd designed the Los Angeles
  201. 9:15International Airport Terminal. He was
  202. 9:17by the late 50s one of the most
  203. 9:19respected architects and planners in
  204. 9:21America. a man who had grown
  205. 9:23increasingly disgusted by what post-war
  206. 9:26suburban development was doing to
  207. 9:27Southern California. The sprawl, the
  208. 9:30chop, the way good land was getting
  209. 9:32sliced into lots and drained of any
  210. 9:35coherence. He looked at more than 20
  211. 9:37possible sites for the new campus. He
  212. 9:40studied cities across southeast Los
  213. 9:42Angeles and Orange County. And then he
  214. 9:45stood on a hilltop on the Irvine Ranch.
  215. 9:48A hilltop surrounded by Limma bean
  216. 9:50fields as far as he could see in every
  217. 9:52direction. And he knew this was the
  218. 9:55site, not because it was the most
  219. 9:57accessible or the most developed,
  220. 9:59because it was the least, because it was
  221. 10:02empty, because it was owned by a single
  222. 10:05entity. Because a man could stand on
  223. 10:08that hilltop and imagine not just a
  224. 10:10university, but an entire city designed
  225. 10:13from scratch without having to buy out a
  226. 10:15hundred different owners or navigate a
  227. 10:18patchwork of competing zoning boards.
  228. 10:21Pereira later said the Irvine ranch
  229. 10:23reminded him of the great European
  230. 10:25university settings, the contemplative
  231. 10:28space, the sense of place, the room to
  232. 10:30grow. He told the Irvine Company
  233. 10:33trustees he needed at least a thousand
  234. 10:35acres for the campus. A trustee told him
  235. 10:38that would be impossible. But there was
  236. 10:41someone on the Irvine Company board who
  237. 10:43disagreed. Her name was Joan Irvine
  238. 10:45Smith and she was the great
  239. 10:47granddaughter of the original James
  240. 10:49Irvine. Joan was 26 years old. She was
  241. 10:52fierce and she understood something that
  242. 10:54the older board members did not. A
  243. 10:57university would do for southern Orange
  244. 10:59County what UCLA had done for West Los
  245. 11:01Angeles. It would anchor everything. It
  246. 11:04would create value that no number of
  247. 11:06lima bean harvests [music] could match.
  248. 11:09She lobbied. She argued. She built a
  249. 11:12coalition of local leaders. And in
  250. 11:14September of 1960, the Irvine Company
  251. 11:17transferred a thousand acres of its
  252. 11:19ranch to the University of California.
  253. 11:22The price was $1. There was a clause in
  254. 11:25the company charter that said real
  255. 11:27property could not be donated to a
  256. 11:29public entity. So the dollar was
  257. 11:31technically a sale, but everyone
  258. 11:34understood the truth. Joan Irvine Smith
  259. 11:37had just convinced [music] one of the
  260. 11:39largest private land holders in American
  261. 11:41history to give away a piece of itself.
  262. 11:45That dollar bought what would become UC
  263. 11:48Irvine. Four years later, the regents
  264. 11:51purchased an additional 500 adjacent
  265. 11:53acres. And by then, William Pereira was
  266. 11:56already doing something far more
  267. 11:58ambitious than designing a campus. He
  268. 12:01was designing a city. In 1960, the
  269. 12:04Irvine Company converted the old Irvine
  270. 12:07family mansion into offices and gave
  271. 12:09them to Pereira. He moved in and began
  272. 12:12working on a master plan, not just for
  273. 12:14the university, but for 10,000 acres
  274. 12:16surrounding it. The concept was radical
  275. 12:19for its time, though it would have been
  276. 12:21recognizable to Ebenezer Howard, the
  277. 12:23English planner whose garden city
  278. 12:25diagrams Pereira had studied closely.
  279. 12:28The university would sit at the center
  280. 12:30like a hub. Radiating outward would be
  281. 12:33residential villages, each with its own
  282. 12:36school, park, and shopping center
  283. 12:38connected by green belts and bicycle
  284. 12:40paths. Industrial and commercial zones
  285. 12:43would be placed deliberately buffered
  286. 12:45from homes positioned to generate tax
  287. 12:48revenue without intruding on daily life.
  288. 12:51Open space, real open space, not
  289. 12:54leftover scraps, would be protected
  290. 12:56permanently. The streets would have
  291. 12:58landscaping allowances built into their
  292. 13:00design. The power line corridors would
  293. 13:03double as bike paths and nature
  294. 13:05corridors. Even the irrigation would be
  295. 13:08planned. The city would use reclaimed
  296. 13:10water on its greenery. Pereira's campus
  297. 13:13design itself was a statement of intent.
  298. 13:15He modeled it on Ebenezer Howard's ring
  299. 13:18plan garden city, a circular central
  300. 13:20park ringed by six academic quadrangles
  301. 13:24connected to the center by radiating
  302. 13:26pedestrian malls. An inner ring half a
  303. 13:29mile in diameter linked undergraduate
  304. 13:31teaching buildings. An outer ring
  305. 13:33connected the specialized research
  306. 13:35facilities. He proposed a town center
  307. 13:38with civic buildings and housing for
  308. 13:4010,000 residents linked to the campus
  309. 13:43entrance by a pedestrian bridge. It was
  310. 13:45idealistic, geometric, and remarkably,
  311. 13:49it got built. Walk the UC Irvine campus
  312. 13:53today and you can still see the wheel
  313. 13:55and spoke layout, still feel the
  314. 13:57influence of a man who believed that the
  315. 13:59shape of a place could shape the lives
  316. 14:02within it. Pereira called it a city of
  317. 14:05tomorrow. And the thing that made it
  318. 14:07possible, the thing that distinguished
  319. 14:09this plan from every other utopian
  320. 14:11sketch gathering dust in an architecture
  321. 14:13school was that the Irvine Company owned
  322. 14:16all the land. There were no holdouts to
  323. 14:19buy out, no city councils to persuade,
  324. 14:22no neighborhood opposition to navigate.
  325. 14:24One company, one plan, one continuous
  326. 14:28piece of earth. The same characteristic
  327. 14:31that had made the ranch possible in
  328. 14:331864,
  329. 14:34its wholeness, its refusal to fragment,
  330. 14:37now made the city possible a century
  331. 14:40later. There is a footnote to this era
  332. 14:42that captures the scale of the
  333. 14:44emptiness. In 1953, 7 years before the
  334. 14:48university deal, the Irvine ranch had
  335. 14:51hosted the third national boy scout
  336. 14:53jamboree.
  337. 14:5550,000 scouts descended on the open
  338. 14:58land, camping on fields that would later
  339. 15:00become Fashion Island. A plaque still
  340. 15:03marks the spot. That's how empty this
  341. 15:05place was in the midentth century. Its
  342. 15:08best use to the outside world was as a
  343. 15:11campground. In 1964, the campus site was
  344. 15:15dedicated. President Lyndon Johnson flew
  345. 15:17in. Governor Pat Brown was there. Daniel
  346. 15:20Aldrich, the founding chancellor, broke
  347. 15:22ground. The following year, in the fall
  348. 15:25of 1965, UC Irvine opened its doors to
  349. 15:28its first class of students. And within
  350. 15:30a year, the first residential village,
  351. 15:33University Park, was welcoming its first
  352. 15:35families. The houses were modern,
  353. 15:38cleanlined, influenced by the post and
  354. 15:40bean California modernism of Ikler and
  355. 15:43the Sea Ranch. Interior atriums brought
  356. 15:46light into living rooms. Green belts led
  357. 15:48to schools and local shops. It was
  358. 15:51handsome, quiet, deliberate, and almost
  359. 15:54startlingly empty. The 1970 census
  360. 15:58counted about 34,000 people in the area.
  361. 16:01Around them, in every direction, the LMA
  362. 16:04bean fields still ran to the horizon.
  363. 16:08Then, one by one, the villages came.
  364. 16:11Turtle Rock wrapping around the hills
  365. 16:13near the university. West Park, Irvine's
  366. 16:16first Mediterranean style village,
  367. 16:18introducing coral colored homes and
  368. 16:20terracotta tiles and palm trees. El
  369. 16:23Camino Royale, Walnut, named for the
  370. 16:26groves that once made the area the
  371. 16:27walnut capital of the world. By 1970,
  372. 16:32five villages were complete. And on
  373. 16:34December 28th, 1971, the residents of
  374. 16:37those communities voted to incorporate
  375. 16:39as a city. The city of Irvine came into
  376. 16:43existence not because a settlement had
  377. 16:45gradually grown into a town that
  378. 16:47gradually grew into a city. It was
  379. 16:50incorporated because a plan said it was
  380. 16:53time. The city was founded on a
  381. 16:55blueprint. The second major phase was
  382. 16:58Woodbridge designed by landscape
  383. 17:00architect Peter Walker and the firm of
  384. 17:02Smith and Williams. It opened in 1975 on
  385. 17:061,800 acres of the ranch's broad valley
  386. 17:08floor, larger than any single previous
  387. 17:11village. Woodbridge took the planning
  388. 17:14concepts and expanded them. Two
  389. 17:16artificial lakes, each crossed by wooden
  390. 17:19foot bridges that gave the village its
  391. 17:20name. Beach clubs on the lake shores, a
  392. 17:24town center within walking distance of
  393. 17:26most homes. Public paths along the
  394. 17:28water. Private waterfront residences
  395. 17:31beside them. a 20- foot high private
  396. 17:33hedge ringing the entire village,
  397. 17:36walling it off from the arterial roads
  398. 17:38beyond. It was a self-contained world.
  399. 17:41You could walk your kids to school, bike
  400. 17:44to the grocery store, swim in a lake,
  401. 17:46and never touch a freeway. That was the
  402. 17:49promise, and Woodbridge delivered on it.
  403. 17:52The population surged. By 1980, Irvine
  404. 17:56had 62,000 residents. by 1990, 110,000.
  405. 18:02But here's the pivot that turns Irvine
  406. 18:04from a wellplanned suburb into something
  407. 18:06genuinely unprecedented. In 1977, a
  408. 18:10federal law, the Tax Reform Act of 1969,
  409. 18:14which had taken years to enforce,
  410. 18:16finally forced the James Irvine
  411. 18:18Foundation to sell its controlling stake
  412. 18:21in the Irvine Company. foundations,
  413. 18:24Congress had decided, could no longer
  414. 18:26hold majority positions in operating
  415. 18:28businesses. The Irvine Company went on
  416. 18:31the market, and the bidding was fierce.
  417. 18:34Mobile Corporation, the oil giant, put
  418. 18:37in an offer. Imagine that for a moment.
  419. 18:40One of the largest petroleum companies
  420. 18:42in the world trying to buy a 100,000
  421. 18:45acres of Southern California. They were
  422. 18:48outbid. The winning group was a
  423. 18:51consortium led by A. Alfred Taubman from
  424. 18:53Detroit. It included Henry Ford III and
  425. 18:58it included a relatively quiet real
  426. 19:00estate developer from Orange County
  427. 19:02named Donald Bren.
  428. 19:05Bren paid in as a minority investor
  429. 19:07contributing enough for a 34% stake. The
  430. 19:11total purchase price was $337.4
  431. 19:14million. one of the largest private land
  432. 19:17acquisitions in California history. That
  433. 19:20number is important. Remember the
  434. 19:23$40,000 that James Irvine and his
  435. 19:26partners paid in the 1860s?
  436. 19:29A century later, the same land sold for
  437. 19:31over $30 million.
  438. 19:34And yet, in hindsight, even 337 million
  439. 19:38was absurdly cheap. Because Donald Bran
  440. 19:41understood something. Bran was the son
  441. 19:44of a Hollywood movie producer, but he'd
  442. 19:46grown up watching his father's real
  443. 19:48estate deals more closely than his film
  444. 19:50sets. After the University of Washington
  445. 19:52on a skiing scholarship, he'd tried for
  446. 19:55the 1956 Olympic team and missed it
  447. 19:57after an injury and three years as a
  448. 20:00Marine Corps officer. He'd started
  449. 20:02building homes in 1958 at the age of 26.
  450. 20:06By 1963, he'd co-founded the Mission
  451. 20:09Viejo Company and masterplanned an
  452. 20:12entire city of 10,000 acres south of the
  453. 20:15ranch. International Paper had bought
  454. 20:17him out for $34 million in 1970. He
  455. 20:21bought himself back for 22 million
  456. 20:23during the recession two years later.
  457. 20:26The man knew how land worked. He knew
  458. 20:29that Southern California had one
  459. 20:31direction, [music] growth, and that the
  460. 20:33Irvine Ranch, even partially developed,
  461. 20:36was not a piece of real estate. It was a
  462. 20:38machine for creating value that would
  463. 20:41never stop running because the land was
  464. 20:44still whole. The plan was still intact
  465. 20:47and the freeways that the California
  466. 20:49legislature had approved in 1959,
  467. 20:52three of them, now linked the ranch
  468. 20:54property directly to the entire Los
  469. 20:56Angeles metropolitan area. Over the next
  470. 21:006 years, as Toddman and Ford lost
  471. 21:02interest or needed liquidity, Bren
  472. 21:04steadily bought their shares. In 1983,
  473. 21:08he was elected chairman of the board and
  474. 21:10became majority owner. The immediate
  475. 21:13payout for Joan Irvine Smith's remaining
  476. 21:15family stake came to roughly half a
  477. 21:18billion dollars. The company's total
  478. 21:20valuation had climbed to around a
  479. 21:22billion, tripling in 6 years. By 1996,
  480. 21:27Bren had purchased every remaining
  481. 21:29share. He was the sole owner of the
  482. 21:32Irvine Company, one [music] man holding
  483. 21:35the same land that one man had held a
  484. 21:38century before.
  485. 21:40The pattern held. What Bren did next is
  486. 21:43what separates Irvine from every other
  487. 21:45masterplanned community in American
  488. 21:47history. Restston, Virginia went [music]
  489. 21:50bankrupt. Colombia, Maryland went
  490. 21:52bankrupt. Irvine never did. Bren ran the
  491. 21:56company with the patience of a farmer
  492. 21:58and the discipline of a marine, which he
  493. 22:00was, having served as an officer after
  494. 22:02college. He set design standards that
  495. 22:05would make the most demanding homeowners
  496. 22:07association look casual. Every single
  497. 22:10family home had to have windows on all
  498. 22:13four sides. Roofs required ceramic
  499. 22:16shingles or terracotta tiles. Each
  500. 22:19village received a plant pallet, a list
  501. 22:21of exactly which trees, shrubs, and
  502. 22:24grasses were permitted. Bren himself has
  503. 22:27been known to drive around the city and
  504. 22:29direct his staff to redo landscaping or
  505. 22:32design details he found insufficient.
  506. 22:35He wasn't building houses to sell. He
  507. 22:38was building a place to hold. And hold
  508. 22:41he did. Unlike most developers who build
  509. 22:44and flip, Bren kept the commercial
  510. 22:46properties, the office buildings, the
  511. 22:48apartment complexes, the shopping
  512. 22:50centers. Today, the Irvine Company owns
  513. 22:53more than 590 office buildings, 125
  514. 22:57apartment communities with 65,000 units,
  515. 23:0140 shopping centers, five marinas, three
  516. 23:04golf courses, and a coastal resort.
  517. 23:08129 million square ft of rentable space.
  518. 23:11[music] The annual rental income alone
  519. 23:13is staggering, though the company being
  520. 23:15private does not release its financials.
  521. 23:18What we know is that Donald Bran's net
  522. 23:21worth derived almost entirely from this
  523. 23:23one company and this one piece of land
  524. 23:26sits at approximately $18 billion. He is
  525. 23:30the wealthiest real estate developer in
  526. 23:32America. He owns the Metife building in
  527. 23:35Manhattan and the core of his empire is
  528. 23:38still the same dirt that James Irvine
  529. 23:41bought from a desperate rancher during a
  530. 23:43drought. The city kept growing and Bran
  531. 23:46kept building, not just homes, but the
  532. 23:48commercial infrastructure that would
  533. 23:50fund everything else. In 1989, the
  534. 23:54Irvine Company completed two 15story
  535. 23:56office towers at the southeastern edge
  536. 23:59of the ranch, anchoring what would
  537. 24:01become the Irvine Spectrum Business
  538. 24:03District. Planning for the retail
  539. 24:06portion had begun in 1985,
  540. 24:08and in 1993, construction started on
  541. 24:12what was originally called the
  542. 24:13entertainment center at the Irvine
  543. 24:15Spectrum. It opened on November 22nd,
  544. 24:191995.
  545. 24:21a massive outdoor complex with Moorish
  546. 24:24revival architecture, a giant ferris
  547. 24:27wheel, and a 21c screen regal cinema.
  548. 24:31Sega opened its first ever arcade venue
  549. 24:34there. The center now draws over 17
  550. 24:37million visitors a year and has expanded
  551. 24:40through six phases over three decades.
  552. 24:44Meanwhile, on the other end of the
  553. 24:45company's holdings, Fashion Island was
  554. 24:47having its own second and third lives.
  555. 24:50It had opened in Newport Beach on
  556. 24:52September 9th, 1967,
  557. 24:55the same year as the rival South Coast
  558. 24:57Plaza 5 miles away in Costa Mesa as a 75
  559. 25:00acre 20 million complex designed by
  560. 25:04Pereira and Welton Beckett with parking
  561. 25:06for 5,500 cars.
  562. 25:0918,000 people turned out for the opening
  563. 25:12night charity celebration. The original
  564. 25:14anchors were Robinsons, JC Penney,
  565. 25:17Buffams, and the Broadway. Names that
  566. 25:19evoke a vanished era of California
  567. 25:22department store culture. By the 2020s,
  568. 25:25those anchors had been replaced by
  569. 25:27Bloomingdales, Nordstrom, Neiman Marcus,
  570. 25:30and Macy's. The center had been
  571. 25:32renovated four times, most recently in a
  572. 25:35$100 million reinvestment that
  573. 25:37transformed its architecture and outdoor
  574. 25:40spaces. Its vacancy rate in its entire
  575. 25:4350 plus year history has never gone
  576. 25:46above single digits. Fashion Island now
  577. 25:49draws 16 million visitors annually to 1
  578. 25:531/2 million square ft of retail. Its koi
  579. 25:56pond, 80 fish, 20,000 gallons installed
  580. 26:00in 1969
  581. 26:02remains one of the most photographed
  582. 26:04spots in Orange County. Between these
  583. 26:07two anchors, the city filled in village
  584. 26:10after village, 22 of them now, each with
  585. 26:12its own architectural character, its own
  586. 26:15schools, its own parks. Northwood with
  587. 26:18its century old eucalyptus windows. West
  588. 26:21Park with its Mediterranean pallet.
  589. 26:23Forola Springs climbing the eastern
  590. 26:25hills, and then the base closed. Marine
  591. 26:29Corps Air Station El Toro had opened in
  592. 26:32November of 1942, built on what was then
  593. 26:35still LMA Bean Fields at the edge of the
  594. 26:38ranch. The name came from a nearby
  595. 26:40settlement of about 130 people.
  596. 26:43Lieutenant Colonel William Fox had
  597. 26:45selected the site because the terrain
  598. 26:47was flat, the weather was clear, and the
  599. 26:50Irvine Company's land was available. For
  600. 26:5357 years, fighter jets roared over
  601. 26:55southern Orange County during World War
  602. 26:58II, Korea, Vietnam, the Gulf War. The
  603. 27:02base covered 4,700 acres [music] with
  604. 27:04two 8,000 ft runways and two 10,000 ft
  605. 27:08runways capable of handling every
  606. 27:11aircraft in the military inventory.
  607. 27:13Its logo, a flying bull, had been
  608. 27:16designed by Walt Disney in 1944 and
  609. 27:20never changed. In 1950, El Toro was
  610. 27:24designated a permanent master jet
  611. 27:26station for Fleet Marine Forces Pacific.
  612. 27:30Several presidents, including Ronald
  613. 27:32Reagan, landed there when visiting
  614. 27:34Southern California.
  615. 27:36For many Marines heading to Vietnam, it
  616. 27:38was the last American soil they stood
  617. 27:41on. For some of them, it was also the
  618. 27:44last. In 1993, the base realignment and
  619. 27:48closure commission marked El Toro for
  620. 27:50shutdown. [music]
  621. 27:51On July 2nd, 1999,
  622. 27:54MCAS El Toro officially closed. Its
  623. 27:57operations transferred to Marine Corps
  624. 27:59Air Station Myiramar near San Diego. And
  625. 28:03suddenly, nearly 5,000 acres of land in
  626. 28:06the middle of Irvine, surrounded by a
  627. 28:0814,000 acre buffer zone that the
  628. 28:11military had maintained for noise
  629. 28:13liability, were available for the first
  630. 28:15time since the Second World War. What
  631. 28:18followed was one of the most contentious
  632. 28:20land use battles in Orange County
  633. 28:22history. One faction wanted to convert
  634. 28:25the base into a commercial airport. Its
  635. 28:27runways were already built. Its
  636. 28:29infrastructure was in place. Northern
  637. 28:32Orange County wanted the convenience.
  638. 28:34Newport Beach residents hoped it might
  639. 28:37relieve pressure on John Wayne Airport.
  640. 28:40The opposing faction, led largely by the
  641. 28:43city of Irvine and the communities
  642. 28:45surrounding the base, wanted a park. The
  643. 28:48fight consumed county politics for
  644. 28:50years. Ballot measures, lawsuits,
  645. 28:53dueling environmental studies. In 2001,
  646. 28:57Orange County voters passed Measure W,
  647. 29:00authorizing the former air station's
  648. 29:02conversion into a park and mixeduse
  649. 29:04development. The airport proposal died
  650. 29:08and the Orange County Great Park was
  651. 29:10born. Approved at a projected cost of
  652. 29:141.1 billion.
  653. 29:16Intended to be the largest new municipal
  654. 29:19park built in California in a
  655. 29:21generation. 1,300 acres of it now sit
  656. 29:25where Marines once trained. and the
  657. 29:27surrounding land has been reszoned for
  658. 29:29housing, adding thousands of new
  659. 29:32residents to a city that was already
  660. 29:34growing at a pace that would have
  661. 29:36shocked William Pereira. The population
  662. 29:39numbers tell the story more starkly than
  663. 29:41anything else. In 1970, the year before
  664. 29:44incorporation, 34,000 people. In 1980,
  665. 29:4962,000.
  666. 29:51In 1990,
  667. 29:53110,000.
  668. 29:55In 2000,
  669. 29:57143,000.
  670. 29:59In 2010, 212,000.
  671. 30:03In 2020, 37,000.
  672. 30:07That is a 900% increase in 50 years
  673. 30:11[music] from a standing start. And
  674. 30:14unlike most cities that grow that fast,
  675. 30:16Irvine did not sprawl. It did not
  676. 30:19fragment. It did not descend into the
  677. 30:21usual American chaos of competing
  678. 30:24jurisdictions and overlapping strip
  679. 30:26malls. It grew on plan. By the 2000s,
  680. 30:30the tech industry had discovered what
  681. 30:32the land had to offer. And the
  682. 30:34discovery, it turned out, had roots
  683. 30:36going back to the very decision that
  684. 30:37created the city. UC Irvine's research
  685. 30:41parks and engineering programs had been
  686. 30:43spinning off companies since the 70s.
  687. 30:46But two founding stories from 1991
  688. 30:49capture the moment when Irvine stopped
  689. 30:52being a suburb and started becoming
  690. 30:54something else. That year, Henry Samueli
  691. 30:57and Henry Nicholas, two engineers out of
  692. 31:00UCLA, founded Broadcom in Irvine, a
  693. 31:04semiconductor company that would grow
  694. 31:06into a global technology giant whose
  695. 31:08chips power the world's data centers and
  696. 31:11wireless networks.
  697. 31:13The same year, three UCLA graduates
  698. 31:16named Alan Adam, Michael Moheim, and
  699. 31:19Frank Pierce founded a small game studio
  700. 31:22they initially called Silicon and
  701. 31:25Synapse. They worked out of a cramped
  702. 31:27space in Irvine, building games for
  703. 31:30other publishers. The company changed
  704. 31:32its name a few times before settling on
  705. 31:35Blizzard Entertainment. Then they built
  706. 31:38World of Warcraft and the world changed.
  707. 31:42Today, Blizzard's sprawling Irvine
  708. 31:45campus employs around 7,000 people. The
  709. 31:48company generated 5.7 billion dollars in
  710. 31:52revenue in 2024.
  711. 31:55Its most famous products, Warcraft,
  712. 31:57Diablo, Overwatch were conceived and
  713. 32:01built in a city that when the company
  714. 32:03was founded had barely a 100,000
  715. 32:06residents and was still surrounded by
  716. 32:08open land. CrowdStrike, the cyber
  717. 32:11security firm that made global headlines
  718. 32:13in 2024, established major operations in
  719. 32:16Irvine. And Industries, the defense
  720. 32:20technology company founded in 2017 by
  721. 32:22Palmer Lucky, the man who invented the
  722. 32:24Oculus Rift virtual reality headset
  723. 32:27before selling it to Facebook for $2
  724. 32:29billion, chose Irvine for its
  725. 32:32headquarters, building AIdriven
  726. 32:34autonomous drones and surveillance
  727. 32:36systems. Anderil reached a billion
  728. 32:39dollars in revenue in 2024 with roughly
  729. 32:423,500 employees. More than 17,000
  730. 32:46companies now operate in the city,
  731. 32:48generating 28 billion annually. The
  732. 32:51average tech salary runs around
  733. 32:53$120,000.
  734. 32:55UC Irvine alone contributes over $5
  735. 32:58billion to the regional economy. And in
  736. 33:012024, the federal government designated
  737. 33:04Irvine as an official tech hub, a formal
  738. 33:07acknowledgement of something the numbers
  739. 33:09had been saying for years. The dollar
  740. 33:12anacre LMA bean fields are producing
  741. 33:14value at a rate that would have been
  742. 33:15incomprehensible to every previous owner
  743. 33:18of the land. And then there's the safety
  744. 33:20record. For nearly 20 consecutive years,
  745. 33:23the FBI's Uniform Crime Report has
  746. 33:26ranked Irvine the safest large city in
  747. 33:28America. The lowest violent crime rate
  748. 33:31of any city with a population over
  749. 33:33250,000.
  750. 33:35This is not an accident. It is, like
  751. 33:38everything else in Irvine, a product of
  752. 33:40design. The village structure creates
  753. 33:42what researchers call cohesion.
  754. 33:45residential neighborhoods placed away
  755. 33:47from major thorough affairs, well-lit
  756. 33:49streets, abundant parks, and community
  757. 33:51centers. A police department that has
  758. 33:54been funded at levels most cities would
  759. 33:56envy, supported by the commercial tax
  760. 33:58base that the master plan deliberately
  761. 34:00created. The Irvine Company's commercial
  762. 34:03properties generate tens of millions of
  763. 34:06dollars in annual tax revenue for the
  764. 34:08city, which flows directly into
  765. 34:10services. The architecture of the plan
  766. 34:12is also the architecture of safety. But
  767. 34:16there is a question that the plan never
  768. 34:17quite answers. And it's the question
  769. 34:19that the audience for this story, the
  770. 34:22people who love the grand hotels and the
  771. 34:24busy commercial [music] streets and the
  772. 34:26architecture built to last will
  773. 34:28inevitably ask. Where is the surprise?
  774. 34:32Where is the jazz club that opened
  775. 34:34because the rent was cheap and the owner
  776. 34:36was a character? Where is the hotel
  777. 34:39lobby where deals were made over bourbon
  778. 34:42at midnight? Where is the building that
  779. 34:44shouldn't have worked but did? The block
  780. 34:47that evolved over a century from
  781. 34:50warehouse to gallery to restaurant row.
  782. 34:54Irvine has none of these things and it
  783. 34:57was designed not to have them. Every
  784. 35:00tree is on a pallet. Every roof line is
  785. 35:03approved. Every village has its own
  786. 35:06character. But the character was chosen,
  787. 35:09not grown. The median home price in
  788. 35:11Irvine reached $1.42 million in 2024.
  789. 35:16The city is 68% more expensive than the
  790. 35:18national average. Its population is
  791. 35:21remarkably diverse, roughly 45%
  792. 35:24Asian-American, 39% white, with
  793. 35:27significant communities from dozens of
  794. 35:29countries. It is by every measurable
  795. 35:31standard one of the most successful
  796. 35:34cities in the United States. It works.
  797. 35:37The schools are excellent. The parks are
  798. 35:39immaculate. The crime rate is
  799. 35:41vanishingly low. The economy is
  800. 35:44enormous. And the man who controls it
  801. 35:46all, Donald Bren, now 94 years old,
  802. 35:50still drives around occasionally to
  803. 35:52check that the landscaping meets his
  804. 35:54standards. He has donated over 57,000
  805. 35:57acres of the original ranch to be
  806. 35:59preserved as permanent open space, more
  807. 36:02than half the total acreage. a gesture
  808. 36:05of conservation so large that it would
  809. 36:07be a landmark act even if it came from
  810. 36:09the federal government, let alone a
  811. 36:12single private land owner. There's a
  812. 36:14spot in the Irvine Ranch Natural
  813. 36:16Landmarks where you can stand and see in
  814. 36:18one unbroken sweep the preserved
  815. 36:20wilderness running from the coastal
  816. 36:22mountains to the sea. [music] There's no
  817. 36:24development in sight. The grass and
  818. 36:26scrub look almost exactly like what
  819. 36:28James Irvine would have seen when he
  820. 36:30first rode onto this land in the 1860s,
  821. 36:33or close to it. Anyway, behind you to
  822. 36:36the north and west, 300,000 people live
  823. 36:39in 22 villages designed by teams of
  824. 36:42architects and planners who spent
  825. 36:44decades thinking about how wide a green
  826. 36:46belt should be and which direction a
  827. 36:49living room window should face. The land
  828. 36:51is both empty and full. It is the most
  829. 36:54carefully controlled significant piece
  830. 36:56of real estate in the United States.
  831. 36:59Simultaneously preserved and monetized,
  832. 37:02wild and manicured, governed by a single
  833. 37:05vision and inhabited by people from
  834. 37:08every corner of the world. William
  835. 37:10Pereira, who started all of this by
  836. 37:12standing on a hilltop above the bean
  837. 37:14fields, once said something that the
  838. 37:16Irvine Company likes to quote. If a
  839. 37:18hundred years from now the campus and
  840. 37:20its community still look as we picture
  841. 37:22them in our master plan, we shall have
  842. 37:25in a sense failed. He meant that good
  843. 37:28planning should allow for evolution, for
  844. 37:30surprise, for the kind of change that no
  845. 37:33planner can predict. He died in 1985, 20
  846. 37:37years into the experiment. Whether
  847. 37:40Irvine has fulfilled his hope or his
  848. 37:42fear depends on what you believe a city
  849. 37:45is for. The bean fields are gone. Every
  850. 37:49last acre of them. Where they were,
  851. 37:51there are now office towers and
  852. 37:52apartment complexes and bike paths and
  853. 37:55artificial lakes and $10 million homes
  854. 37:57with terracotta roofs and windows on all
  855. 38:00four sides.
  856. 38:01The Irvine Historical Museum, the oldest
  857. 38:04standing structure within the original
  858. 38:06ranch boundaries, built in 1868 when
  859. 38:09James Irvine the First needed somewhere
  860. 38:11to stay during his visits, sits in the
  861. 38:14middle of a city that didn't exist when
  862. 38:16the last lima bean was harvested.
  863. 38:19It's a small building. The land around
  864. 38:21it is worth more per square foot than
  865. 38:23most downtown districts in America.
  866. 38:26$18,000.
  867. 38:28108,000 acres. $1 337
  868. 38:33million 18 billion. The numbers tell one
  869. 38:36story, the land tells another. And the
  870. 38:39city, Irvine, California, population
  871. 38:42318,000,
  872. 38:44safe and planned and humming with
  873. 38:46commerce. The most improbable city in
  874. 38:48America. The city tells a third story.
  875. 38:52One that isn't finished yet. One that
  876. 38:54may never look quite the way anyone
  877. 38:56imagined. Because that's the thing about
  878. 38:59land. You can plan everything on it. You
  879. 39:01can control everything about it. You can
  880. 39:04design the windows and the roof lines
  881. 39:06and the plant pallets and the bicycle
  882. 39:08corridors. But you can't design what the
  883. 39:11people who live there will remember or
  884. 39:14what they'll miss or what they'll wish
  885. 39:16for in a moment of quiet standing at the
  886. 39:19edge of a green belt as the sun drops
  887. 39:22behind the Santa Ana mountains and the
  888. 39:24last light catches the curve of a road
  889. 39:26that someone 60 years ago drew on a
  890. 39:30piece of paper and said, "Here, put it
  891. 39:34Here.

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