I'd make the low-lying drowned section into the new Naples--Florida, that is. Carve canals in place of the streets, raise the homesites a few dozen feet above sea level (no building below sea level!!). Let the rich people live there. That solves the class and race issues. If the rich people can't get away from hurricanes on their sail boats nobody can.
Lower- and middle-income housing I'd rebuild on the north shore of Lake Pontchartrain, just below Route 10. That looks to be well above sea level, and it would give them some buffer against future storms.
Polish up the
French Quarter, sell it as a tourist destination once again, and
voila! You're back in business.
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