As the government of NY says, UP NY! ... oh wait, make that, Start UP NY.
Ah well, like so many of these new TLDs, the rules will undoubtedly change, though probably too late for the registry to recover. Looks like the Mayor of NYC is stepping into it again. Spending the city's time and money on .NYC domain registrants seems a great use of city policing resources, the citizens of NYC must be so proud [/sarcasm].