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Rebuilding New Orleans; Hurricane Ophelia Continues to Pound Mid-Atlantic Coast; President Bush Will Address Nation Tonight in Primetime; Parts of New Orleans to Open Soon

Aired September 15, 2005 - 13:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

FREDRICKA WHITFIELD, CNN ANCHOR: The hurricane in no hurry to leave. Ophelia dumps a steady stream of wind and rain on the North Carolina coast. We are tracking that storm.
Reopening to the residence. The mayor of New Orleans says some people can actually come home in a few days. We're live on that story.

Stranded dolphins. Survivors of the storm spotted miles from home. And now, the race is on to get them back where they belong. From the CNN Center in Atlanta, I'm Fredericka Whitfield. Kyra Phillips is on assignment this hour. CNN's LIVE FROM begins right now.

What it lacks in size and strength it makes up for in inertia. It's Ophelia. The minimal hurricane with maximum staying power just off the Outer Banks of North Carolina. CNN's Susan Candiotti is spending a miserable day on Nags Head. Meteorologist Bonnie Schneider, meanwhile, is dry in our weather center upstairs.

Susan, let's begin with you.

SUSAN CANDIOTTI, CNN CORRESPONDENT: All right. Not just a few minutes ago, Fredricka, I could actually see the sun peeking through a bit. But it's not uncommon, of course to get the extreme outer bands coming and going with the drying out a bit. And then getting a driving rainstorm. So right now, that's what we are getting a bit of now with the sand. And that's why we have to keep cleaning off the lens. Otherwise I would look like a big blob in the middle of the screen.

In any case, here in the Outer Banks, Nags Head, specifically, they are feeling much more relieve now since Ophelia is staying offshore and not coming ashore. We are getting a little more rain than usual. But they never had an evacuation order here and most of the residents have stuck around. In fact, many of them didn't even board up their homes. Some did, some didn't.

Not long ago I spoke with the emergency operation center director Sandy Sanderson who talked about what he was hearing about reports from Hatteras Island and other areas at that time.

(BEGIN VIDEO CLIP)

SANDY SANDERSON, DARE CO. EMERGENCY MANAGEMENT: Last night I went to bed. I was a little concerned about it. The 11:00 advisory. 5:00 advisory we had it further to the south, the track. And that's going to keep most of the main winds offshore and also the rain.

CANDIOTTI: And so do you feel that you were very lucky this time?

SANDERSON: Mother Nature plays strange tricks in strange ways. Yes, I think once again the Outer Banks has been spared a direct hit.

(END VIDEO CLIP)

CANDIOTTI: All right now, so the latest reports we are hearing from Hatteras Island is that the three southern-most towns down there. Buxton, Briscoe, and Hatteras have indeed lost power. But perhaps more importantly, no flooding is reported. They have blowing sands across the highways down in Hatteras Island. But the roads are still said to be passable.

Naturally they will have to assess things in the morning. As we take a look up at the coast here just a little bit. We can give you a little more information statewide. They are talking about only minor to moderate damage. Particularly in those counties to the south of here around the Wilmington area. Around Camp Lejeune.

No injuries or deaths reported. Some of the beach towns that were reporting some flooding, I am told, the water is already receding. Now they are going to be sending damage teams out in the morning. And in the meantime, a team of national guardsmen, FEMA, as well as state highway patrol troopers stand at the ready to respond as necessary. Back to you, Fredricka.

WHITFIELD: All right, Susan Candiotti, thank you so much. Well, if nothing else, Ophelia has taught meteorologists the art of patience.

BONNIE SCHNEIDER, CNN METEOROLOGIST: Right.

WHITFIELD: Bonnie, I understand you always had that, however.

SCHNEIDER: You are right, Fredricka. This storm definitely has tried everyone's patience because of its constant wobbling and uncertainty of where it will go. Right now Ophelia is stationary offshore, but we are expecting movement to the northeast which is good news. The storm pulling a way a bit from the Outer Banks.

But still, we have a lot of concern for downpours of rain and even some very strong winds. Just in the last hour, we had a wind gust reported here at Cape Hatteras of 60 miles per hour. The strongest of the weather, meaning the wind and rain, is offshore. But we are still getting some areas of spotting rain towards Nags Head further towards the north.

So we are watching for a possibility in eastern North Carolina to get another three to five inches of rain. That's a possibility as we work our way into the overnight hours even tonight. But the storm is a slow mover, as you know. So right now only stationary. Meaning Ophelia is sitting still. But eventually the storm will be on the move.

Speaking of rainfall totals, since this storm actually approached the coastline, I just want to show you some of the heaviest rain we've seen, in Wilmington. That's where we've had reports, 15 inches plus, even 18 inches in some areas. So you can see even though the storm didn't completely come on shore that eye wall did cause some very, very serious downpours for the coastal sections of the Carolinas.

Now the big question is with Ophelia, where will the storm go next? And when will it be completely out of our hair? Not quiet yet, just yet. As we mentioned, the storm is slow moving and now it is nearly stationary with maximum winds at 80 mile per hour. Still a Category 1 hurricane.

Eventually, though, the National Hurricane Center in Miami takes the storm to the north and to the east. Now there is still that cone of uncertainty as we talk about hurricanes. And the reason we are still concerned with that is parts of coastal Massachusetts and Rhode Island are in that cone of uncertainty. So when we look at our computer models, we are watching closely.

Will the storm make its way across the area of eastern Massachusetts, bringing some wind and rain to the region towards the weekend. Or will it just completely work its way to the east. As you know with Ophelia, Fredricka, this is a very tough storm to predict. So we will be monitoring it throughout the day and into the night.

WHITIFIELD: All right. Thanks so much Bonnie Schneider.

Quote, "We are bringing New Orleans back." Those are the words from Mayor Ray Nagin. One resident and business owner at a time, he says, and much sooner than expected. Nagin says the city's Algiers section will reopen on Monday. Uptown and the Garden districts of New Orleans will reopen on Wednesday. And Friday in the French Quarter, the week after next. He expects some 180,000 New Orleaneans. More than one-third of the pre-Katrina population to be invited back by the end of the month.

The American Red Cross estimates more than one-third of the dwellings in the southern-most Mississippi area are destroyed outright. And three out of four may be uninhabitable. New on the scene to help house Mississippi's homeless, a 490,000 (ph) passenger cruise ship docking next door in Mobile, Alabama.

Well, back in Washington, Congress is passing tax breaks and other aid almost as quickly as members can raise their hands. Today alone they've passed measures giving victims easier access to their retirement nest eggs and easing taxes on anybody who provides long- term shelter for evacuees. A House committee, meanwhile, launched its own investigation into what went wrong with preparation and first response.

President Bush is making his fourth trip to the gulf coast region since Hurricane Katrina devastated the area. He is scheduled to deliver a nationally-televised address from the French Quarter in New Orleans tonight. CNN White House correspondent Suzanne Malveaux joins us live from Jackson Square.

Suzanne?

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Fred, of course, as you know, this is a very important moment for the president. And perhaps even a defining moment and a credibility test for the president following weeks of scathing criticism that the federal government responded too slowly to this natural disaster. Of course, the president and staff picking Jackson Square. The heart of the French Quarter in New Orleans to lay out his vision. His broad vision. What they say he will talk about.

An unprecedented amount of federal aid that will be extended to the people. To the victims and survivors of the Gulf region. We are talking about housing, education, tax credit, job training, a very broad vision here. He will not give us the dollar figure. Of course, a lot of this to be worked out with Congress still. But this is going to be a single moment where the president will be at the square. He will face a single camera. It will be without an audience. He will talk directly to the American people.

All of this, of course, Fred, is part of the White House strategy to try and turn things around here. We saw just two days ago a very different tone and demeanor of the president as he took responsibility for some of the government's missteps. We expect to hear some of that same kind of language this evening. Fred?

WHITFIELD: And Suzanne, Jackson Square. You and I were last there at Jackson Square at that beautiful church. The Catholic Church behind you attending a wedding. Mayor Morial's wedding a few years ago. What are your impressions of what you're seeing there in the French Quarter because it's a bit higher elevation in the rest of New Orleans. Overall it didn't have much standing water. What have been your observations and what will the president see this evening?

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Fred, you know, that was certainly an incredible memory at that time at the wedding, of course. Even the reception afterwards was at the New Orleans Convention Center. Those are cherished memories. But things very much different just driving in here.

The French Quarter, of course was spared a lot of the flooding. What you seer boarded up buildings. Completely abandoned desolate area. Driving in towards the French Quarter, well, that's where you see a lot of the devastation. It's just kind of unbelievable to know that this is the same city, the same town that we are so familiar with. But again, I have to say that I'm perhaps one of the lucky ones that my family members were all able to get out safely.

WHITFIELD: I'm glad to hear that update. Thanks so much. Suzanne Maveaux, there in Jackson Square, in Downtown New Orleans. CNN will be carrying President Bush's address from new Orleans tonight. His speech is scheduled for 9:00 p.m. Eastern, 6:00 p.m. Pacific. CNN live coverage begins at 7:00 p.m. Eastern, 4:00 p.m. Pacific.

President Bush will also tour hard-hit areas in coastal Mississippi again. Mississippi's attorney general plans to take a hard line to get insurance companies to help storm victims. Jim Hood plans to sue some insurers to force them to pay for flood damage. Homeowner policies usually cover wind damage, but not damage from floods. Few people had special FEMA flood insurance since most of the area was not designated as flood zones.

Efforts to rescue victims of Katrina aren't limited to the people of the Gulf Coast. Scientists want to save eight dolphins that were washed out of their 30-foot tank and spotted in the Gulf of Mexico over the weekend.

CNN national correspondent Gary Tuchman has been following the rescue efforts. He is live with the latest. Gary?

GARY TUCHMAN, CNN CORRESPONDENT: Fredricka, we have a good story for you. A happy story. Eight dolphins swept out of the tank at the aquarium. The people who work at the aquarium in Gulfport thought they were either dead or missing forever. They spotted all eight a half mile at the beach together. They weren't even together in the aquarium. But they've been hanging out together in the last few days. And today they have rescued two of those bottle-nosed dolphins. They have been put on a mat, a mat that was tied to a buoy about half a mile off the coast.

And the two dolphins that have been captured are mother and daughter. Twenty five-year-old Jackie, the bottle-nosed dolphin. Her 17-year-old daughter Tony. Both weigh 350 pounds. Both were the sickest of the eight dolphins. The trainers out there and the veterinarians know that these dolphins are very skinny. Much skinnier than they were before the hurricane. And they have a lot of abrasions.

And they took them from the mat and then brought them to a NOAA boat. A NOAA boat that's been used for the occasion. They put the two dolphins. You see it one at a time because they can only do it one at a time. But they put the dolphins in a stretcher. Wrapped the dolphins you. And then brought them the boat to the coast. They were put in a truck. A police escort for four miles to a hotel inland here in Gulfport.

And the dolphins were then taken to the hotel. Brought to the swimming pool that was specially treated. And then dumped in the swimming pool where those two dolphins are now safe and sound. Now, six more dolphins still in the water, they are still swimming around. But the waters are too choppy as we speak.

The effort will continue tomorrow to rescue those dolphins. Nothing's for sure because the longer they are in the water the more they have to deal with contaminated water. Predators they know nothing about. And the more familiar they are with the water the more they start spreading out. But they do hope they get all eight of those dolphins. Ultimately, after they are in the pool for a little while, they will be sent to other aquariums throughout the United States because the one here in Gulfport was destroyed. Fredricka, back to you.

WHITFIELD: All right. Gary Tuchman. I hope it is a happy ending for them. Everyone needs to hear that. Thanks so much.

The fine print versus families in need. State officials take on insurance companies who are saying much of the damage done by Katrina may not be covered. What you can learn from the dilemma straight ahead.

And next, affirmative action, abortion, and the Constitution, what senators did and did not learn about chief justice nominee John Roberts.

(COMMERCIAL BREAK)

WHITIFIELD: The Senate Judiciary Committee has completed its public questioning of chief justice nominee John Roberts. Among the topics before the hearings wrapped up this morning, affirmative action. CNN congressional correspondent Joe Johns is on Capitol Hill with the latest. Joe?

JOE JOHNS, CNN CORRESPONDENT: Fredricka, if there was one area where Democrats thought John Roberts might be vulnerable, it was this area. Civil rights, affirmative action. It's pretty clear right after John Roberts finished testifying this morning, they brought up a new panel to testify about the nomination that included a number of civil rights experts, including Congressman John Lewis of Georgia, very well-known in the area of civil rights.

He testified today that he's very disturbed about this nomination.

(BEGIN VIDEO CLIP)

REP. JOHN LEWIS, (D) GA: If the federal courts had abandoned us in the civil rights movement in the name of judicial restraint, we might still be struggling with the burden of legal segregation in America today.

Judge Roberts' memos revealed him to be hostile towards civil rights, affirmative action and the Voting Rights Act.

(END VIDEO CLIP)

JOHNS: Roberts got a lot of questions throughout the hearing particularly from Senator Edward Kennedy of Massachusetts about the issue of affirmative action. About civil rights. About the Voting Rights Act, in fact. Roberts responded this morning that he was working for the Reagan administration. Wrote a number of memos in these areas. But what his argument is, that he's essentially just doing his job back in those days.

(BEGIN VIDEO CLIP) JOHN ROBERTS, CHIEF JUSTICE NOMINEE: The long and short of it is that if you look at my record on the question of affirmative action. Yes, I was in an administration that was opposed to quotas. Opposition to quotas is not the same thing to opposition to affirmative action. That was something that President Reagan emphasized repeatedly.

(END VIDEO CLIP)

JOHNS: Now, Roberts, of course, said this morning that he is not an ideologue. He and the people who support him here in the United States Senate say the fact of the matter is he'll be a fair judge. A fair United States Supreme Court justice. A fair chief justice, in fact, and that's the bottom line. Back to you, Fredricka.

WHITFIELD: All right, Joe Johns on Capitol Hill. Thanks so much.

Super storms causing billions in damage. Hurricane Katrina's nearly 175 mile-per-hour winds pounding the Gulf Coast. Scientists say storms this strong are guess what? On the rise. New information on a disturbing trend ahead on LIVE FROM.

KATHLEEN HAYS, CNN CORRESPONDENT: I'm Kathleen Hays at the New York Stock Exchange. Coming up, two major airlines file for bankruptcy. I'll tell you how that may effect your frequent flyer miles and your travel plans. That's coming up next on LIVE FROM. Please stay with us.

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WHITIFIELD: It's official. The National Oceanic and Atmospheric Administration declared today that Katrina was the most destructive hurricane ever to strike the United States. Worse, even than Hurricane Camille back in 1969. Mississippi Attorney General Jim Hood plans to file suit against some insurance companies accusing them of pressuring homeowners to sign waivers declaring that their homes were damaged by floods not wind. Most household insurance policies there cover wind damage but not flood damage.

CNN personal finance editor Gerri Willis has been looking into that and she joins us now from New York. Gerri?

GERRI WILLIS, CNN CORRESPONDENT: Fredricka, good to see you. That's right. Mississippi Attorney General Jim Hood is filing lawsuit against five insurers operating in the State of Mississippi. Now at issue here is whether these insurers should have to cover damage from flooding. Now as you may know, most of these home insurance policies only lay claim to paying you for damage from wind or wind-blown rain.

But if your house floods, the insurers say that you have got to have a policy from the federal government. Let's take a look at the insurance companies that are on the hook here. Mississippi Farm Bureau Insurance. Some of the biggest insurers in the country. State Farm, Allstate, you see a long list here. The names could change. We could get more names here, Fredricka. And I want to tell you a little bit about the language in this lawsuit. It's really fascinating. What the attorney general is saying is that it's unconscionable, unfair, unjust that these insurers are not covering people for their full losses. They say the wording in the policy is vague and difficult to understand and that the policies even contradict themselves. And here you see direct language from the lawsuit that's been filed.

Again, "unreasonably favorable to the defendants" is the language they have. And "oppressive to the policy holders." The exclusions again, being for damage from the flood waters. Now, as you know, there's millions and millions of dollars that are expected to be spent to put these people to right. The industry itself is also commenting today on their reaction to this lawsuit.

Listen to Jeanne Salvatore from the Insurance Information Institute.

(BEGIN VIDEO CLIP)

JEANNE SALVATORE, INSURANCE INFORMATION INSTITUTE: Individual insurance companies are going to need to make up their own mind in terms of how they are going to respond to this. That essentially, though, the insurance industry did not charge a premium for flooding. And flooding is not covered under standard homeowner's policy.

(END VIDEO CLIP)

WILLIS: So there you have it. The industry is saying if you didn't buy a flood insurance policy, it's your fault. Very hard news for people out there who were suffering in the wake of Katrina. Fredricka, the other thing I want to mention here. This is not all the attorney general is doing. He's also issuing a restraining order against these very same companies. He wants them to stop issuing waivers. Apparently some people in Mississippi signed waivers in which for $3,000 in personal expenses, they agreed to the fact that the damage to their house was caused by flooding not wind. Which would mean that the insurer wouldn't be on the hook to pay for those damages. So we'll be following this closely, Fred, to see what happens next in this story.

WHITFIELD: So, Gerri, why would the attorney general be willing to take on all of these companies when the precedent shows that few of these policies would even cover flood? And so, as a result of this storm, most of these homes were damaged by floods. Why would he think through this lawsuit that the policies should change?

WILLIS: Well, Fred, he says that people don't even understand their policies. They are written in such gobbledygook that people can't make out what they mean. And that they don't have any opportunity to negotiate with their insurer to get something better.

Now, it's an open question as you bring up whether this lawsuit will succeed in its aims. Certainly, it goes against the practice we've had in this country for some time. I think some 40 years. That we've had flood insurance underwritten by the federal government. So I think we are going to have to wait and see what happens next.

All right, thank you so much. Gerri Willis.

Well, the devastation widespread throughout the Gulf region. Particularly in New Orleans. There are a lot of issues at hand. Not just insurance, but the rebuilding, when to allow people in. We know that the business community will start to make their way back into New Orleans as early as this weekend.

And leading the recovery efforts or the response efforts, that is, from Hurricane Katrina has been the coast guard's Admiral Thad Allen along with the homeland security chief Michael Chertoff. Well our Kyra Phillips is traveling with both of them. And they are in New Orleans. And Kyra's on the telephone with us now. Kyra, what are you all seeing as a collective body right now as the president gets ready to make his address this evening from New Orleans?

KYRA PHILLIPS, CNN ANCHOR (on phone): Hi, Fred, right now I'm walking with Admiral Allen and Secretary of the Department of Homeland Security Michael Chertoff and also General Russel Honore.

We are walking along the pier side right behind the convention center. We have been spending the day. We started off pretty early in the morning with Admiral Allen. He met with the mayor of New Orleans, Ray Nagin. (inaudible) actually unbelievable, Fred. I might sound like I'm out of breath. Because you have to run pretty fast and pretty hard to keep up with these men as you can just imagine.

Michael Chertoff just arriving via Coast Guard helicopter on the deck of the Iwo Jima. Admiral Allen was there to greet him. And then that is when we connected with General Honore. Now basically he's walking along pier side here where the command center is set up. You have a couple of Carnival Cruiseline ships where all the first responders are staying. Like the NOPD. The firefighters. Rescue teams.

General Honore's camp is set up here right behind the convention center. And then Admiral Allen, command control if you will is out of a huge truck. Also along here on the pier right by the convention center.

Chertoff and Admiral Allen and General Honore are getting ready to go inside -- Yes, thank you, sir. And I'm also being told that the new FEMA Director Paulison, of course, is right behind them in the other helo. And he's getting off. I'm trying to see if I can make contact and see him.

I see him right now. The acting director of FEMA as well. So Fred, basely, all the players are here. Going to be a pretty intense stage as you can imagine with the president of the United States arriving in just a couple of hours. And we will be there by his side as well with all these leaders as they start talking about what's next for New Orleans. And it's pretty amazing if you sit and listen to the conference calls.

They are already talking about business up and running in New Orleans. And getting that going in addition to the housing situation, too. And getting people out of the shelters into house. As you can imagine a lot on the plate today, a lot of things for all these leaders to discuss.

WHITFIELD: Well, Kyra. While all the players are on the ground there, all the key players in order to help in this recovery effort, is it also being said that it might be ambitious given the residual contaminants from the water even as they recede or be pumped out into Lake Ponchartrain, that opening up these businesses or allowing business persons to come in as early as this weekend, allowing to French Quarter to be up and running in the next two week, is that ambitious given that there are still some pollutants that are on the ground and in the air? As well as along side the walls of many of these buildings that were once inundated with water?

PHILLIPS: Well, I think ambitious is the perfect way to describe the United States military. The perfect way to describe the Department of Homeland Security right now. I've seen nothing but an intense commitment to ambition.

As you sit and listen to these conference calls, and while they talk about opening up businesses and they talk about getting people out of the shelters and into their homes, on their minds as well as that issue of the health concerns that the water, the air -- what I'm telling you right now that I'm walking through these areas with these leaders.

They are here. These are the leaders of this effort right now. They are not afraid to come here and meet with the people and go into these areas. So, it's moving. I can say it's moving rapidly to decrease the threat with regard to the health concerns. And there are constant surveys going on. There's a lot of paper work. There's a lot of reports.

And if you sit and listen to the conference calls that are done almost every hour and listen to all the various players involved including those involved with the environment and with the health and safety issues, it's moving quickly. And there's a lot of money being funneled into here, a lot of resources, and it's pretty incredible to watch this unfold minute by minute. Truly, I've never seen anything like it.

WHITFIELD: And Kyra, before I let you go, we heard from Mayor Ray Nagin earlier who said while he's happy that there are a number of law enforcement teams on the ground, at this point he believes there are too many and that includes military presence as well. So, you are with the powers that be. Are they talking about scaling back in any way, shape or form in the short term?

PHILLIPS: Well, you will see the Department of Defense taking a different role now, and the Department of Homeland Security taking an even bigger role. You will start to see General Honore and his forces not step aside. They are going to be here for a while, but you will see those DOD resources and forces slow down a bit and not be as fluid. And you are going to see more FEMA. You are going to see more Coast Guard. You are going to see more of the agencies under the Department of Homeland Security take over this operation. I've got to tell you, everybody I'm talking to, Fredricka, has a tremendous amount of faith in Admiral Allen. You know, and I asked him this today.

I said, you know, you are replacing Michael Brown, the head of FEMA. He resigned, and now there's an acting director of FEMA, but really, you are the man here in charge of operations. You kind of came into a position already with a lot of people angry at you.

And he said, I realize that I have a full dance card, but I'm willing to take on the challenge. He has got a great sense of humor in addition to being extremely professional in dealing with the criticism as well as not having an issue with cutting through the red tape.

As a matter of fact, he calls it a battle rhythm. He said I'll continue this battle rhythm and I'll continue to cut through the red tape and make sure that the right things get done at the appropriate time. And as he says, it's going to move very quickly under my command.

WHITFIELD: All right, Kyra Phillips on the phone from New Orleans. We look forward to more reports from you. Thanks so much.

More of LIVE FROM right after this.

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WHITFIELD: An hour-and-a-half before the markets close, you're looking at the numbers right now. The Dow now up 13 points.

Is it just a coincidence or are the hurricanes out there really getting stronger? A study just released says they are. They are getting stronger. Here with the story, technology correspondent Daniel Sieberg. So it's no illusion.

DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT: It's no illusion, and quite concerning for a lot of people who are finding out about this study. Forecasting hurricanes has become more accurate in recent years with the help of tracking technology and satellites. And now this new report says the number of Category 4 and 5 hurricanes like Katrina are on the rise.

(BEGIN VIDEOTAPE)

SIEBERG (voice-over): After years of relative quiet in the Atlantic, monster hurricanes seemed to be breaking out all over. Now a study in the journal "Science" appears to confirm there really has been a greater number of strong hurricanes in recent years.

UNIDENTIFIED MALE: Let's assume that we have 250 for the heck of it.

SIEBERG: Peter Webster, Judy Curry and colleagues crunch the numbers on 35 years of data from hurricanes and cyclones all over the globe. The data suggests the number of storms per year has remained relatively stable over time. But in recent years, the strength of the storms has spiked.

PETER WEBSTER, GEORGIA TECH: The intensity of hurricanes in all of the places including the Atlantic Ocean have increased substantially so that there are more Category 4 and 5 hurricanes.

SIEBERG: So what's behind the more powerful hurricanes? Well, scientists say natural climate cycles like El Nino and La Nina play a big role. The study says the spike in storm intensity mirrors a rise in ocean surface temperatures which, in turn, may be linked to global warming. But it's too soon to make that link conclusively.

JUDITH CURRY, GEORGIA TECH: There's certainly a significant component that is associated with greenhouse warming. How much is associated with natural variability? That just hasn't been sorted out.

SIEBERG: Other scientists point to a government-funded study that suggests global warming will affect hurricanes gradually over the next 100 years or so.

CHRIS LANDSEA, NATL. HURRICANE CTR.: So, if that's the case, I mean, that may be good news that global warning may not have an appreciable impact on hurricanes.

SIEBERG: Whether it's global warming or cyclical, most experts agree that the monster hurricane trend is not going to ease up anytime soon.

(END VIDEOTAPE)

SIEBERG: Scientists behind the report hope that policy makers and governments takes notice as further evidence that coastal communities need to be prepared for the worst. So while Hurricane Ophelia, currently bashing parts of North Carolina is only rated as a Category 1 storm, we can expect to see more horrific hurricanes in the near future.

WHITFIELD: I think all of us can be convinced that if ever there was complacency, particularly before Katrina, that won't exist for quite some time because even with Ophelia, people are taking it seriously. Even though there are some places that aren't evacuating, folks hear the word hurricane now and they get real nervous.

SIEBERG: Right, and this is another piece of evidence to let all sorts of people know, people who are preparing for these types of things know that this is only going to get more serious in the future. Whether it's cyclical or not, they are definitely going to be following this and making sure they're aggressive.

WHITFIELD: All right. Dan Sieberg, thanks.

Now the blame game. Former FEMA director Michael Brown says just hours after the scale of Katrina disaster became known, he placed frantic calls to higher ups at Homeland Security and the White House. Brown tells the "New York Times" he told his boss, Michael Chertoff, and the office of the White House Chief of Staff, Andrew Card, quote, "I am having a horrible time. I can't get a unified command established," end quote. Still, Brown says, quote, "I truly believed the White House was not at fault here."

Meanwhile, New Orleans Mayor Ray Nagin is sticking to his guns asserting that race and class influenced the federal response to Hurricane Katrina. On CNN's "LARRY KING LIVE" last night, Nagin repeated his allegations saying the response would have been quite different if Katrina's victims had been white and middle class.

(BEGIN VIDEOTAPE)

LARRY KING, CNN ANCHOR: Mayor, let's clarify your position on race and class in all of this. A poll shows black Americans think bush is more to blame. The white Americans think you are more to blame. The city is mostly black,. Would it have been different if the city were mostly white? What is your general thoughts on this race- class issue?

NAGIN: Well, you know, Katrina in its -- was an awesome storm from the standpoint it made the country look at some things that we probably don't like looking at. The face of the people that were suffering for the most part were African American. They were poor.

As we were going through the crisis, my initial take on this was that it was more class issue because, you know, poor people really don't have a lot of power. So, if this had happened in another part of California or New York or Miami or something, somewhere like this, most likely it would have been a different response. And that's the hard cold facts around this.

Now, whether it was a hard core racial issue about people that -- the president or the governor or Ray Nagin didn't like black people. I don't know. You are going to have to talk to them about that. I just had some awful experiences that really suggested to me that race was a part of what -- the dynamics that were going on here.

KING: Give me an example of one.

NAGIN: Well, you know, we had some people that were trying to go into another section of the metropolitan area, another parish, an adjourning parish, and basically, they were met with attack dogs and guards and, you know, and then another example, people were so frustrated in the convention center that they wanted to walk across the Crescent City connection to go meet the buses, they didn't want to stay in filth and the stuff happening there and they were turned around again. And, that just did not sit very well with me.

(END VIDEOTAPE)

WHITFIELD: A short while ago, Nagin said parts of the city will reopen next week and the French Quarter on September 26th.

Well, how do you completely rebuild a city of a half million people? Starting from scratch in New Orleans, we'll talk about what planners might have in mind, coming up next.

And later, Hurricane Katrina's toll on gas prices that's working in your favor. Details a bit later.

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WHITFIELD: So where do we go from here? The mayor and many New Orleans business owners want to start rebuilding their ravaged city as soon as possible, but not everyone thinks the process should be rushed. The next New Orleans has a chance, and some would say a duty, to reinvent itself in a way that rights some of the social wrongs that have existed for generations there.

Bruce Katz is the director of metropolitan policy at the Brookings Institution. He's joining us now to talk about rebuilding New Orleans from scratch. So, how do you rebuild this city outside of just talking about the structural rebuilding of the city? Is it possible to right some of the social wrongs when you talk about structural rebuilding?

BRUCE KATZ, BROOKINGS INSTITUTION: I think there's a huge possibility to build a very different kind of city.

WHITFIELD: How?

KATZ: And I think the first key issue here is to have some clear principles. And one of those principles has to be do not repeat the mistakes of the past.

The neighborhoods that were hardest hit by the hurricane were essentially federal enclaves of poverty. Public housing, other federally subsidized housing. These were very poor neighborhoods where a large portion of the people were living in poverty and did not have access to quality schools and good jobs.

So what the rebuild has to be about are neighborhoods of mixed income, economically integrated, quality design. We've done this in other cities. We can replicate that in New Orleans.

WHITFIELD: When you talk about rebuilding this city, and you talk about certain neighborhoods that were particularly at a disadvantage because of the levee, we're also talking about elevation. So before we even get, you know, trying to create mixed communities, where people with various social and economic backgrounds are living together, don't you still have to repair or try to respect the fact that there's an elevation disparity there when you talk about rebuilding? How do you go about correcting that, if at all possible?

KATZ: Well, there -- this is a threshold issue, obviously. I mean, can you build environmentally sustainable communities? And there were plans in place, not funded, not implemented, that would have protected many of these low-lying areas from the ravages of the flood. And I think those threshold decisions are going to have to be made, and some of the responses will be fiscal.

But I think, you know, there are various plans that are either in effect or could be built, developed, in the near term. But what I haven't really heard discussed yet, either by the administration or even through the local and metropolitan community, is the clear need not to repeat the concentration of poverty.

WHITFIELD: So when you talk about dispersing the various economic backgrounds and having people of different backgrounds -- whether it's the wealthy end or the lower-income end -- live together, you're also talking about trying to bring together very different cultures. Are these residents up and willing to do that? Do you see that they could actually co-exist? Because we are talking about a city that historically has been very segregated based on race and economic background.

KATZ: Well, we've done some of this in New Orleans over the past ten years, and we've done a lot of it throughout the country. And that's what the tear-down of these high-rise and densely concentrated public housing developments.

We've torn down in the United States about a tenth of the public housing inventory since the mid-1990s. And what has emerged from the rubble are economically integrated developments that continue to have some very, very poor residents, but also house moderate and middle income residents, as well.

WHITFIELD: And so you're hopeful that this kind of plan could work?

KATZ: Absolutely. We've done it. We've done it suburbs through zoning. We've done it in former public housing developments, through the so-called Hope Six program. We have lessons that can be applied to New Orleans, once we pass some of these threshold issues of sustainability.

WHITFIELD: All right, Bruce Katz. Thank you so much. We're out of time. From the Brookings Institute. Thanks so much.

KATZ: Well, thank you very much for having me.

WHITFIELD: Reopening the French Quarter in less than two weeks, allowing the business personnel to come back as early as this weekend. It's a daunting task, especially for some businesses hit hard by Katrina. We'll check out one restaurant looking to bounce back.

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WHITFIELD: In a bid to get the New Orleans tourism industry back into operation as soon as possible, Mayor Ray Nagin today announced plans to reopen the French Quarter by September 28th.

As CNN's Miles O'Brien reports, achieving that goal will be a challenge.

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GUNTER PREUSS, RESTAURANT OWNER: This (INAUDIBLE) off too, already upstairs. EVELYN PREUSS, RESTAURANT OWNER: (INAUDIBLE).

MILES O'BRIEN, CNN CORRESPONDENT (voice-over): Gunter and Evelyn Preuss are looking for signs of hope. Their family-owned restaurant in the heart of New Orleans' French Quarter escaped serious damage from Hurricane Katrina. A single fallen tree on the patio and only a smattering of mold on the carpet means cleanup will be relatively easy. But that's just the beginning.

GUNTER PREUSS: We need power. We need water. And we need somebody to give us provisions. We don't know where we're going to get our provisions from. We don't know where are the seafood dealers, what's happened to them, where are the meat providers (ph), where are the produce people.

O'BRIEN: Local seafood from the Gulf is one of Broussard's specials. On the Saturday before Katrina hit.

GUNTER PREUSS: That particular evening we had fresh trout, fresh pompano (ph), fresh ratfish (ph).

O'BRIEN: Now this long-time chef says he might have to rely on frozen fish for a time. But filling the freezers may prove easier than filling the restaurant's tables.

GUNTER PREUSS: Because we did lose all of our convention business, which really drives the French Quarter. We lost the employees. We're looking for our employees. So it's like a beginning again for us.

O'BRIEN: But Preuss vows he won't abandon his restaurant or his city.

GUNTER PREUSS: We are not going to move out of New Orleans. We are not. We are here to stay. We are going to open up our business. We are going to survive.

O'BRIEN: He wants to open the doors on October 1st. His wife wants them to open sooner.

EVELYN PREUSS: We want to get all a little bit of the crew in tomorrow and clean up and feed the people in the quarter. They need to eat somewhere and we're going to feed them right here at Broussard's.

O'BRIEN: Preuss believes in time customer will return.

GUNTER PREUSS: We're going to get a lot of convention business in here. Maybe not right now, but starting maybe in January, February. When people, in a sense, want to see what's going on, then they'll feel maybe a little sorry for us, so I think everything is going to work out for us.

Miles O'Brien, CNN, New Orleans.

(END VIDEOTAPE) WHITFIELD: And the Preuss couple happen to be proud parents of our supervising producer right there, Andreas (ph) Preuss. So glad that they're doing well and they have an optimistic outlook on Broussard's as well as for New Orleans a whole. And we thank you, the Preusses, for your wonderful son Andreas.

We'll be right back.

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WHITFIELD: Gas prices are finally letting up, but don't get too excited.

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WHITFIELD: And that's going to do it for this Thursday's edition of LIVE FROM. I'm Fredricka Whitfield at the CNN Center Atlanta. Wolf Blitzer takes over from here in "THE SITUATION ROOM" -- Wolf.

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