NEW ORLEANS (AP) — A settlement over Six Flags Inc.’s lease with New Orleans for the site of the defunct Six Flags New Orleans theme park was approved Thursday by a federal bankruptcy judge in Delaware.Approval comes amid plans for a startup company, Southern Star Amusements of Baton Rouge, to take over the site and develop a Nickelodeon-themed park.Under the agreement, Six Flags, which is in bankruptcy reorganization, will pay the city $3 million and 25 percent of any insurance proceeds Six Flags recovers from Hurricane Katrina damage above $65 million.Under Southern Star Amusement’s plan, the new development would cost $165 million to $170 million. Nickelodeon, a unit of Viacom Inc., will get a licensing fee and the city will retain a leasing arrangement with Southern Star. There will be no local public funding used to construct the park.The financing package counts on up to $100 million in Gulf Opportunity Zone bonds, which were set aside for rebuilding along the Gulf Coast following the 2005 hurricanes.The park has been shuttered since Katrina hit in August 2005 and its parent company said it had no plans to reopen it. Six Flags filed for bankruptcy reorganization on June 13, saying it needed to lighten a $2.4 billion debt load.Six Flags has paid $1.4 million a year in rent, which in addition to $1 million a year from the city makes up the $2.4 million annual payment due until 2017 on a U.S. Department of Housing and Urban Development loan used to build the park in the late 1990s when it was known as Jazzland.—-Contact The Daily Reveille’s news staff at [email protected]