City points out an obvious reason why it may not want its own top level domain name.
In comments (pdf) to Internet Corporation for Assigned Names and Numbers (ICANN), New York City Senior Counsel Katherine Winningham says application fees for new top level domain names are too high:
“Based on the current economic situation and its impact on governmental entities, [New York City] again wishes to voice its concern that the application, operational, and dispute resolution fees for the new gTLD program will be beyond the means of governments who are already hard pressed during a time of acute budget deficits to provide for core governmental services and functions. The City urges ICANN to adopt evaluation and operational fee models that will encourage a broad base of new gTLDs that serve the broader public interest.”
For a city facing budget deficits of billions of dollars, you must wonder why it is so keen on pursuing the .nyc top level domain name. Apparently it thinks it will make money with the domain name.
My advice would be to sit out this round (assuming it happens in the next 12-18 months) and go for it the next time around.