DONALD L. BREN : His Views on Fashion Island, the Economy

Donald L. Bren is one of Orange County’s most prominent--and reclusive--business executives. As chairman of the Irvine Co., the Newport Beach resident is consistently listed as the county’s richest individual.

Newport Center Fashion Island is the premiere shopping center owned by Irvine Co. On the occasion of its 25th anniversary, Bren granted a rare telephone interview--to Times staff writer Chris Woodyard--and talked about the center and Orange County’s economic outlook.

Q: How do you feel about Fashion Island as a center? Has it met your expectations?

A: It certainly has, and I’m very pleased with the direction and the renaissance of Fashion Island.

It has been over eight years we have been in this process. I’m pleased with the community and the customer response. The customer is king, ultimately. They are the final judge.

Q: How do Bookstar and Circuit City, both discount-oriented stores, fit in?

A: Both of those are perfect examples of what people want today, as opposed to 1967.

Q: What’s left to be done there? Where would you like to see that center 10 years from now?

A: Let me put it to you this way: A major shopping center, whether it is in Newport Beach or somewhere else, if it is successful, continues to expand. I call it regrowth. There is regrowth by bringing in new merchants. It is a continuous proposition.

Q: Do you see a particular direction it might be heading?

A: It’s the different experience--the food, the dining. I see, and we are hoping to have, outside coffee places. We want to make it an everyday place of life. (Customers) want to think about it as their downtown place. They will spend extended time at Fashion Island.

Q: Do you feel that sales for the center are meeting expectations?

A: Well, they are. From the company’s standpoint it’s a long-term investment. Yes, we’ve made an additional investment over the last eight years. We’ll see a return on investment, and the community is supporting that, the customers are supporting the changes. So we’re satisfied.

Q: There’s also been talk of building another mall in the Irvine Spectrum area (near the junction of the San Diego and Santa Ana freeways). Is that project still on the move?

A: Retail, as you know, has changed direction. We’ve moved into the 1990s. Large-scale shopping centers have also changed. As we look at the future of Irvine Center, my vision isn’t good enough to tell you what that would look like, but my bet would be that it would be different than Fashion Island.

Q: It sounds as if you’re saying it’s still on track and that it would be more of a “power center” type concept.

A: No, I can’t tell you that. I wouldn’t tell you it would be a power center or a discount center. I think the assemblage of shopping and the mix would be different. I can’t tell you it would be a discount center. My sense is it won’t be.

Q: But what about what’s been going on at the Mission Viejo and Laguna Hills malls, both of which have announced expansion plans?

A: Most of that has been made in the newspaper. Very little has taken place on site.

Q: It’s been pretty much a battle of words so far?

A: Well, that’s right. The Irvine Center is very much involved in that market area. I really can’t tell you much more on that, but we continue to track it and do early planning.

Q: So there’s no real timetable at this point?

A: Well, no.

Q: What about Orange County as a whole? Is it going in the direction you would like to see it go?

A: We all know we’re in a recession, and have been for several years. I am disappointed with our current weak economy, but as I visualize the direction for our company over 10 years, I am optimistic about the future, and I am pleased about our progress to date.

Q: Have growth restrictions gotten out of hand? Are they damaging the county’s ability to grow economically?

A: I see a strong growth trend for Orange County over the long term, and, as you know, our investment in Orange County is very long term. Over the long term, I am optimistic, and even though we are in a trough or a weak economy, I am optimistic. As far as growth restrictions are concerned, I think we are meeting the demands and needs of our community as we are progressing.

Q: Everyone at Fashion Island always wants to make comparisons with South Coast Plaza. Should they be viewed as different kinds of centers?

A: Not only are they different, but I believe the shopping experiences are complementary.

Q: Complementary in what way?

A: They are complementary in that I believe the architectural theme, the way-of-life theme, the mix of shopping in Fashion Island creates a different experience.

Q: So one would be living a rather limited life to go to one and not the other?

A: That’s right. The dining and entertainment experience at Fashion Island creates that kind of separation.

Q: Has the recession hit Fashion Island any harder than it has other centers?

A: The merchants and the customers are both suffering from the weak economy. On the other hand, our merchants have been very supportive of the center and are enthusiastic about what we are trying to accomplish. They are good business people.

Q: Is there anything the county could be doing to lure more business here and to raise the general economic vitality of the region?

A: I believe our county has predicated our economy on small-business operations instead of large manufacturing types of businesses. It’s my perception those small businesses are flourishing even in difficult times. Orange County will be successful due to internal growth, not growth from the outside.

Q: We’ll take care of ourselves, in other words.

A: That’s right. And that is occurring as we speak.