[4] He found a location on Los Gatos Creek that he thought would provide sufficient water power.

In 1853, he raised the money for the construction, borrowing $130,000 from two lenders (including one who charged an interest rate of 3% per month), and in 1854, the mill was built.

Built on the site of a Mexican ranch, the mill represented the shift of land ownership from the Californio Dons to the new settlers arriving after the Mexican–American War.

Not only that, but there was also only enough water in the creek to power the mill during the winter months, meaning that the machinery sat idle for much of the year.

[5] Besides his outstanding loans, Forbes had also lost a lot of money speculating on wheat and flour and was forced into bankruptcy.

He had sold his interest in his company in 1860 and served as postmaster of Placerville and sheriff of El Dorado County until his purchase of now-named "Clifton Mill".

[6] In 1869, he brought in partners WS McMurtry and JW McMillen and renamed the company as the Los Gatos Manufacturing Co.

It was then abandoned and finally, in 1971, it was revived as a youth center for Los Gatos with live rock music on Friday and Saturday nights.