In a potentially crippling economic blow, a new federal floodplain designation will likely halt development in Sacramento's Natomas basin and require flood insurance for 70,000 residents.

"I don't think this is fair. I don't think this is logical," fumed Sacramento Mayor Heather Fargo. "To cripple us economically in the process (of improving flood control) is absolutely dumb."

The U.S. Army Corps of Engineers and Federal Emergency Management Agency have announced the entire Natomas basin is at risk, with levee problems so severe the area cannot even meet requirements to withstand a 1-in-33 year flood event.

It means that when new federal flood maps are finalized in early December, the Natomas basin will have an AE designation. Any property owner with a federally-backed mortgage will be required to buy flood insurance. Any new construction... Read more...