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Galveston was hit pretty hard by Hurricane Ike in 2008.
Ike was a day in the park compared to the Hurricane of 1900. What really killed Galveston, IMHO, was the building of public housing in the middle of the city. Yes UTMB and Sealy Hospitals needed low cost (read low pay) janitors and such but the public housing deteriorated and brought in a bad element, drugs and gangs which made living a few blocks away much less attractive. Drive out to west Galveston and there are new developments where people have built second homes. The city government has always been very parochial. BOI's, Born on the Island, still have a closed mentality. All Galveston needs to get back on track is casino gambling but the baptists in Texas won't let that happen. Busses leave every day for Louisiana filled with people going to the casinos.

Casinos equate to a moron tax. For more than half of the population, cigarette taxes, alcohol, and lottery tickets are about the only taxes they ever pay.