It seems as though you know that hyperlocal businesses have not done well in the past. What is the unique thing you bring to the table that might save you from their fate?
2) A native ad product (sponsored photo/link) which local businesses understand, because they're already creating the content for existing social media.
3) A content model based on a form of media which people enjoy both consuming and creating, rather than zoning board recaps and the crime blotter. I'm not denigrating either of those - I enjoy both - but like a lot journalism they are costly to produce relative to their travel.
I think Facebook groups are typically used at micro-local (eg. a city block) scale and it's perfect for sharing information in that context. I'm not sure how that maps to a neighborhood. Do you have any firsthand experience?
I also plan to circulate content in a less geographically siloed way than these quite private platforms.
Litany of crippling systemic factors: http://streetfightmag.com/2013/08/23/why-your-hyperlocal-con...