See:
transit nodes,
overall topology,
#1 Make it largely
automobile free, with trams and dedicated truck lanes. Leave large groups of several city blocks carfree, or at least car free outside a few morning delivery hours. Allow for electic pallet movers and emergency vehicles, of course. Connect city transit to passenger railways and local airports.
This would allow for a better use of land (40-50% of urban land is dedicated to cars) which economizes on the amount of land that needs to be raised.
#2 I'd condemn (and pay for) the entire site, and place the land in a federal land trust. I'd raze any buildings that were severely damaged and without historical merit, as well as obsolete public housing, and areas in need of parks and other public infrastructure. Any buildings not razed would be returned to their owner.
#3 Any vacant land would be assigned through open auctions for long term ground rents, with an annually increasing rate. Land under existing owned buildings would be offered at an appraised value.
#4 The land rents would fund public services in NO, public safety, public transit (free trams in the carfree districts), public schools, levees, pumps, etc.
#5 A portion of the land rents would be used to offset Louisiana state taxes as assessed against buildings. Another portion would offset sales taxes.
#6 Any excess would be divided evenly among the permanent residents of NO, including, for a period of one year, those who were residents immediately prior to Katrina.
The net effect would be:
No taxes on buildings - lots of new buildings, which means building space is relatively inexpensive, for businesses, jobs, and
housing.
Lots of money for government - think how much money goes to pay for land today, paid in response to no ones labor, only paid to someone who got there first.
I know that in the District of Columbia, annual increases in land value have exceeded the 'state' and local government budget for the last 10 years, and that the annualized land price would pay for government and an additional
Citizen's Dividend or
Guaranteed Minimum Income of almost $5,000 per person ($20,000 per family of 4).
New Orlean's real estate probably wasn't as valuable as DC's but then again 40% of DC's land isn't taxable due to the Federal Gov't, Sovereign Nations, and other exemptions. Also, I'd bet, after reconstruction, New Orleans's land will be quite valuable.