It doesn't matter at all with a storm of this magnitude. If it were a smaller storm, passing just to the east would be the worst, because the winds would shove the lake into the city from the north.
But in this case it just doesn't matter. The city is going to be uninhabitable for quite some time.
that may be preferable however, the lake being pushed into the city, rather then a dome of water from the ocean coming in along with that eastern part of the eye.
I hope FEMA has some huge pumps.
http://www.atmos.washington.edu/~ovens/loops/wxloop.cgi?wv_east_enhanced+12+-update+3600
Here is another loop view!
God bless all in the path of this storm!