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"We take the attitude that even though we own the land, in reality we are only guardians of it," says President Raymond Watson. "When people advise us how they would like to see it developed, we listen." That philosophy has enabled Irvine to gain the support of California ecology groups for its projects. Next, three miles of choice coastline will be developed along the southern edge of the ranch. If California's coastal commission approves, 80% of the property, including hilltops overlooking the ocean, will be left untouched. On the remaining 2,000 acres, Irvine will erect a resort, three mini shopping centers and 14,000 homes.
Sudden Speedup. Irvine's management is "the best in the business," says U.C.L.A. Professor Fred Case, a land-development expert. Mobil and Cadillac Fairview have added their praise. Still, Watson, a 50-year-old former San Francisco architect who joined Irvine as planning manager in 1960, admits that he feels "apprehensive" about the impending takeover. One danger is that a new owner may order a sudden speedup in Irvine's growth in order to increase its profits; that could expose the company to the same boom-and-bust cycle that bedevils other developers.
The vote to decide who buys the company will be made soon by the eight directors of the Irvine Foundation and by 48-year-old Joan Irvine Smith, a granddaughter of the ranch's founder; she controls nearly half of the 45.5% of Irvine stock that is not held by the foundation. Although several board members are leaning toward Mobil's bid, Mrs. Smith favors SMBH & Z's latest offer because it would permit family members to buy back some Irvine Co. shares. Last summer she sued to block Mobil's initial $200 million bid for all Irvine shares on the grounds that they are worth much more than that. She may well be right. California's attorney general, who oversees all foundation finances in the state, has joined her lawsuit and suggested that Irvine might actually be worth around $500 million.