The historic Forbes Mill Annex is the oldest remaining commercial structure in Los Gatos. Before the town got its current name, it was actually called Forbes Mill, then Forbestown. The initial mill was erected in 1854 and lasted until 1916. Its storage unit has stood the test of time and is now a sort of monument. But the Town-owned facility has been sitting empty for years, raising questions about its future.
Titan of industry
The remains of the old flour mill are perched along Highway 17 under the pedestrian overpass. It’s named for James Alexander Forbes, who acquired 2,000 acres of Rancho Rinconada de Los Gatos around 1853 from Jose Maria Hernandez, one of the grantees of the 1840 Mexican Land Grant. Given that flour was, at the time, being sourced from South America (“at great cost,” notes George G. Bruntz in the book, History of Los Gatos: Gem of the Foothills), Forbes saw an opportunity. So, after a couple years, a four-story-tall building had sprouted, financed primarily by his rich uncle J. Alexander Forbes. Three stories were made of stone taken from a canyon to the south, while the top floor was made of wood, Bruntz notes.
Forbes built the mill amid the optimism of the gold rush. But things started going downhill in 1855 when his uncle returned to England and was no longer around to bail him out. He declared bankruptcy in December 1856. Gustav Touchard acquired the mill and dams in 1857. V. Marzion & Company, of France, took possession of it, but didn’t have much luck. A. Pfister & Company of San Jose, Samuels and Fanner, and W.H. Rogers & Company all had a crack at making improvements and trying to develop the business. J.W. McMillan and Dr. W.S. McMurtry purchased a half-interest in the mill (with W. H. Rector and C. C. Hayward also involved) in 1869 as it became the Los Gatos Manufacturing Company.
By the early 1880s, the mill had become an important cog in the American economy. “While other cities and towns may boast of a larger population than ours, for the manufacture of the finest grade of flour known to the markets of the civilized world, Los Gatos Flouring Mills stand pre-eminent,” wrote the Los Gatos News, Aug. 13, 1881. “Between the grim iceburgs of Alaska to the rugged headlands of Patagonia, and from the muddy waters of the Missouri River to the ocean-laved shores of this sunset land, it has no superior, and well may our little village be proud of its wonderful Flouring Mills, whose name and fame have gone abroad and are now becoming more familiar in the countries beyond the sea.”
After supply problems and a fire, the mill shut down in 1887 (it was last used on Jan. 14 that year). The buildings fell into the hands of the Los Gatos Ice & Power Company, then the Los Gatos Ice & Electric Light Company. PG&E purchased the property in 1912. The mill was knocked down to a single story in 1915, with even that being destroyed in 1929, Department of the Interior paperwork shows. “P.G. & E. sold the property in 1955 and moved their facility to the other side of the new Highway 17 freeway being built,” reads a National Register of Historic Places Inventory application from the 1970s. “The next use for the annex was ca. 1961-62, as a Naval Museum by Admiral Lockwood, a WW II submarine commander. The building leaked and money and public interest were lacking, so the project failed. Next, youth groups were allowed to use the building with a minimum of change until the problem of earthquake vulnerability was raised to end that use (1971-72).” Eventually, the annex would be used as a museum.
The Town hires a broker
A few years ago the Town of Los Gatos turned to Bob Shepherd, executive vice president at real estate firm Kidder Matthews, to help sort out a future for the property. “I was the broker for Immawalli Properties, and the Town would not sell the property because it is a heritage property” he said, noting they were offering a 35 year lease. But, he noted, there are significant repairs that had to be completed. “There were a few great things about the building—like the history, its design and that it had parking,” he said, recalling the four years he spent showing the place. “I truly believe that could have been the most beautiful office building in Santa Clara Valley.”
He says a variety of parties—from financial planning firms, to insurance companies, to tech industry folks—showed interest. “Through the four-year period, I truly believed we could find a tenant that would fall in love with the building,” he said. “But unfortunately, we couldn’t find the right fit, partially due to Covid. But I do think there’s still an opportunity there.” Town Manager Chris Constantin says, if someone has a serious plan for the space, they’d love to hear about it. “We engaged a broker to assist us in marketing the building and we were not successful in finding the right tenant that balances the beauty of the historic building with the surrounding residential and other uses,” he said. “Going forward, we are open to hearing from people interested in bringing this building back into use.”
