Tax breaks

I read this:

Lawmakers intend to follow the immediate aid with a broader package of tax breaks to encourage rebuilding, particularly in New Orleans. President Bush proposed creating a Gulf Opportunity Zone with about $2 billion in special tax breaks encouraging businesses to build or expand in the region.

Question: Given how New Orleans is apparently prone to hurricanes, why should business be given additional incentives to build there? Should firms also be encouraged to build atop the San Andreas fault? I'm somewhat kidding but also kind of serious. Just as federal flood insurance acts as a market distortion, I see this package of well-intentioned tax breaks as having a similar impact.