still waiting for step 3
it was just over a year ago that i scooped up the domains based on mike’s silly blog-la-sphere neologism and launched something like the old lablogs.com. after a brief spike of 172 daily visitors shortly after launch (probably after being linked by la observed), it has settled into an average of about a dozen visitors a day. the total take from the google adsense on the site has been $6.12.
thankfully, the site is pretty much on auto-pilot now, except i occasionally add new blogs to the list when i notice them mentioned somewhere. and i sometimes get emails from not-very-clueful public relations people about how to get an event listed.
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You could launch similar for other cities. I have a list of Boston area blogs that's not too out of date.