It all depends on its development. Its not just about type in traffic it is about interpretation. I have around 100 cityof domain names, mostly Australian covering all the largest cities. Those that I have running produce great results if developed and marketed properly. Search engines love them as well since they are the Cityof......
Walking into a customers shop and promoting the cityof......com is a recognisable brand and sometimes confused with local Councils.
I think cybermonkey hasnt heard the penny drop on this but you have. If you can find some I recommend you buy it and develop it. Ultimately the name will be worth a lot of money but initially there is more money in building the local business directory. See
www.cityofgosford.com a small city 1 hour north of Sydney Australia. We exceed 10,000 visits a month on this site alone and the site has produced well over $50,000 in revenue in its first year.
Good Luck