This error happened occasionally in stable 0.8 too, but this time on the 0.8-2054-g0eaaafd experimental version this error also crashs the game, in subsequent new games this error repeats so I can’t play at all. I have to delete the game and re-unzip the downloaded file to play the game again.
I’m on Windows 8.
Edit: Reset the world seems to fix this problem, it’s weird because I already set the ‘Delete world’ option to “Yes” so a world reset shouldn’t be necessary.
Were you playing with a larger city size? Right now the game will only place shelters outside of cities, so if you are playing with larger city sizes sometimes it can’t find a place to put one.
Yes, I did set the city size to 10, I’ll set it back and try again.
Double post.
Reset the city size to 4 (default value) and everything back to normal, I can play without problem again.
Though, any plan to fix this big city size problem? I’d like to go back to enjoying big city size someday. 
Eventually we have some plans to at least put in a quick fix for this. For now you can get around the problem in most cases by simply hitting spacebar and starting.