Will New Orleans be rebuilt?

Hurricane Katrina devastated the city of New Orleans, displacing thousands of people form their homes, and their jobs. This unfortunate set of events has been very costly to the residents and business's of New Orleans, but it has been a profitable event for cities like Baton Rouge. The real estate market in Baton Rouge, Louisiana is booming, with the real estate market reaching numbers it has never seen before. Houses are being placed on the real estate market and are being bought almost immediately. People are not concerned with the price of the home, but rather having a home. Business's in New Orleans have now relocated to Baton Rouge, and have no plans to reestablish offices in the New Orleans area. This raises the question, should New Orleans be rebuilt? Many think that it should not as business's have relocated and the economy of New Orleans would decrease tremendously. The opportunity cost of rebuilding an entire city could be much more costly than if the city was just left as is. The government should just use the money that would go to the families that have lost their homes, and distribute evenly. This would allow the citizens to purchase new homes elsewhere. This would also prevent the risk of loosing the city again to a major flood or hurricane.