Congressman Pushes For 'Louisiana Recovery Corporation Act'

Market forces alone haven't been able to generate needed investments in areas devastated by Katrina, and people have nothing to return to without those investments. A new idea has promise.

1 minute read

February 17, 2006, 7:00 AM PST

By Michael Dudley


"New Orleans faces two chicken-and-egg problems that private markets don't know how to remedy. The first is how to get people to live in places where there are no jobs because there are no people living there. The second is how to get capital to rebuild damaged buildings in neighborhoods that are worthless because so many buildings are so badly damaged.

There's no private market renewing New Orleans because nobody has an incentive to move back or reopen a business or invest, because no one can be sure there will be enough other people moving back, reopening, and investing to make it worthwhile.

This is why an idea now being pushed by Republican Congressman Richard Baker, who represents Baton Rouge to the north of New Orleans, is so sensible. Baker wants to create something called the Louisiana Recovery Corporation. Essentially, it would buy property and mortgages at 60 percent of their pre-Katrina values, package them together in parcels that might be attractive to private developers, and then auction off the packages. The resulting revenues from developers would then replenish the fund."

Wednesday, February 15, 2006 in Common Dreams

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 14, 2025 - Diana Ionescu

Rendering of California High-Speed Rail station with bullet train.

California High-Speed Rail's Plan to Right Itself

The railroad's new CEO thinks he can get the project back on track. The stars will need to align this summer.

May 19, 2025 - Benjamin Schneider

"Units for sale - contact your local realtor" sign in front of homes.

‘Displaced By Design:’ Report Spotlights Gentrification in Black Neighborhoods

A new report finds that roughly 15 percent of U.S. neighborhoods have been impacted by housing cost increases and displacement.

3 hours ago - Next City

Turquoise blue Pyramid Lake near Reno, Nevada.

Nevada and Utah Groups Oppose Public Land Sell-Off Plan

A set of last-minute amendments to the budget reconciliation bill open up over half a million acres of federally managed land to sales.

4 hours ago - Inside Climate News

Alpine Recreation Center sign in park in Chinatown, Los Angeles, CA.

More Than a Park: A Safe Haven for Generations in LA’s Chinatown

Alpine Recreation Center serves as a vital cultural and community hub in Los Angeles' Chinatown, offering a safe, welcoming space for generations of Chinese American residents to gather, connect, and thrive amidst rapid urban change.

5 hours ago - American Community Media

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.