ABSTRACT

A story in The Wall Street Journal (September 8, 2005) right after Katrina sets the stage:

Despite the disaster that has overwhelmed New Orleans, the city's monied, mostly white elite is hanging on and maneuvering to play a role in the recovery when the floodwaters of Katrina are gone. “New Orleans is ready to be rebuilt. Let's start right here,” says Mr. O'Dwyer, standing in his expansive kitchen, next to a counter covered with a jumble of weaponry and electric wires.

A few blocks from Mr. O'Dwyer, in an exclusive gated community known as Audubon Place, is the home of James Reiss, descendent of an old-line Uptown family. He fled Hurricane Katrina just before the storm and returned soon afterward by private helicopter. Mr. Reiss became wealthy as a supplier of electronic systems to shipbuilders, and he serves in Mayor Nagin's administration as chairman of the city's Regional Transit Authority. When New Orleans descended into a spiral of looting and anarchy, Mr. Reiss helicoptered in an Israeli security company to guard his Audubon Place house and those of his neighbors.

He says he has been in contact with about 40 other New Orleans business leaders since the storm. Tomorrow, he says, he and some of those leaders plan to be in Dallas, meeting with Mr. Nagin to begin mapping out a future for the city.

The power elite of New Orleans—whether they are still in the city or have moved temporarily to enclaves such as Destin, Fla., and Vail, Colo.—insist the remade city won't simply restore the old order. New Orleans before the flood was burdened by a teeming underclass, substandard schools and a high crime rate. The city has few corporate headquarters.

The new city must be something very different, Mr. Reiss says, with better services and fewer poor people. “Those who want to see this city rebuilt want to see it done in a completely different way: demographically, geographically and politically,” he says. “I'm not just speaking for myself here. The way we've been living is not going to happen again, or we're out.”…