Los Altos Hills is moving ahead with annexing two more areas, La Loma Drive and Hidden Villa. Both have been on the city's radar for annexation for a long time without the stigma of being "county land." Many developers like the premise of being in the county versus the town because the county has more liberal development criteria and puts up fewer design review roadblocks when obtaining planning approval and permits.
I think this is a great move on the part of Los Altos Hills. One question I get from prospects and clients is, "will this improve or reduce the value of my property?" In my opinion, it will have very little affect on the value of the homes in the area. If anything, there may be small increases in valuation due to being "official" but it would be less than 1%.
Hee's a link to the story from the SJ Mercury News: