The Hold Steady are currently based in Brooklyn, but that might be cheating as they're originally from Minnesota. Texas is the Reason, Gorilla Biscuits, Saetia, Reagan Youth, The Slackers, Jets to Brazil, Gogol Bordello, Beastie Boys, Wu-Tang Clan(?), The World/Inferno Friendship Society, King Django... yeah, that's all I got.
Oh, and I'd also suggest including "New York State of Mind" by Billy Joel. Post the mix when you're done!