The city is below sea level. It should not be rebuilt. Scoop up all the thugs and air drop them into Los Angeles.
Do you also want to build a city on top Mount St. Helens?
There wasn't a city already on Mt. St. Helens. New Orleans has been there for hundreds of years. People live in all kinds of places that at one time or another will require federal emergency aid, and for some, rebuilding. Last night someone posted a long list of such places, and no area of the country was exempt from disaster of one kind or another.