Big storms bring big problems to Leucadia. Highway 101 and the businesses alongside it are in a natural drainage swale and they suffer the majority of flooding. The highway sits in lower than the rest of the corridor, with the high bluff tops to the west, and higher ground to the east, across the train tracks.
In 2001, the City paid $4 million to lay 2 miles of storm drain between Highway 101 and the train tracks. Although this alleviated some of the flooding it did little to fix the problem.