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Secondly of the funds that were transferred to New Orleans over the last decades, were diverted by the local levee boards to buy a Gambling Casino and a private marina. It would appear that the “Big Easy’s” reputation for inept governance and corruption is well deserved.

Bingo. The fools pi$$ed away their levee money buying everything BUT levees.

Do you have references for this? I've seen this posted a couple of times and I've been looking for the citation, but haven't found it yet.

http://66.102.7.104/search?q=cache:MkpGrx0jQqYJ:www.globalsecurity.org/security/ops/hurricane-risk-new-orleans.htm+new+orleans+%22south+shore+harbor%22&hl=en&client=safari

Orleans Levee District, a quasi-governmental body, is resposponsible for 129 miles of earthen levees, floodwalls, 190 floodgates, 2 flood control structures, and 100 valves. The governor appoints six of the board's eight members, and they serve at his pleasure. When a storm approaches it is responsible for closing the hundreds of hurricane protection floodgates and valves on levees surrounding the city. All residents outside of these levees evacuate.
The District's General Fund accounts for all operating funds for the daily operations of the Administrative Offices, Field Forces, Law Enforcement and support operations necessary to maintain the Board's level of services for flood protection and public safety.
The District's Special Levee Improvement Projects Fund (SLIP) accounts for the capital funds for major maintenance and/or capital improvements of all physical property and plant owned by the Board that is identified as directly related to flood protection.
The District's General Improvement Fund accounts for the capital funds for major maintenance or capital improvement of all physical property and plant owned by the Board that is not identified as directly related to flood protection. These projects relate to land reclamation, commercial buildings, improvements (other than buildings), and infrastructure.
The Orleans Marina currently operates with 355 open slips, 66 boathouses, a Harbor Master Office, as well as related marine amenities. The South Shore Harbor Marina was officially dedicated September 19, 1987. The Marina operates with 447 open slips, 26 cover slips, marina center, fuel dock, and Harbor Master Office as well as related marina amenities. The Belle of Orleans gaming operation is housed at South Shore Harbor and is the principal tenant in the harbor. The annual operations require a subsidy to satisfy the operating shortfall resulting from a substantial debt service requirement on the outstanding Marina Public Improvement bonds.

Emphasis added.

So "South Shore Harbor" is apparently the name of one of the money pits where the levee board was sinking its funds.