The news is full of New Orleans. There are all sorts of topics to discuss. But, this site being devoted to the topic, let's consider "how much"?

There is a real possibility that portions of the city may not be rebuilt, or at least abandoning them will be considered. What's the tradeoff? Briefly, what will it cost to secure the neighborhoods against a similar disaster as compared to what it will cost to buy them out.

Let's consider the first. The Army Corps of Engineers had a proposal that would possibly have saved the city. It was killed on environmental grounds in 1977. When we consider cost, shall we consider non-monetary cost as well? How? Basically, whatever the concrete, steel and fill might cost, the cost of environmental delay is an imponderable. Politically, who might come out on top? The poor residents? Their political representatives? Or environmental organizations? In the wake of New London, will the City declare the area blighted and redevelop it into something less population intensive? What impact on City revenue might that have? To whom will the now evacuated residents appeal? Will they? The possible environmental questions are myriad, but it is easy to visualize some who feel the inundated areas should so remain. As with Ground Zero in New York, it is easy to envision the resolution of these questions taking years, making cost imponderable.

In the meantime, the cast of characters is likely to change. Mortgage lenders are presently exercising forbearance in collection of their loans. At what point will that change? If the community residents don't form a viable coalition, what about lenders in possession of foreclosed property? Not a very sympathetic group, but often powerful. But whoever stands up, what will they expect in terms of compensation? Value as of a month before the storm? What will the government be willing to pay? Value as of the day after? In either case, there is some work to be done.

It is possible to envision a combination of disaster relief payment equal to the value of the lost structures and a government buyout equal to the value of land before the storm. It is even possible to envision a settlement based on some function of value for property tax purposes. It is hard, however, to envision all parties sitting down and readily agreeing to that resolution.