I am not a lawyer, and this is not a legal advice site. To get a final opinion, hire a lawyer.
There are 2 aspects in your question:
- Can I use the City of New York without doing copyright infringement?
- Can I use Google Street View and related to build the city?
The City of New York
The name of geographic locations cannot be trademarked, so the name of the city, the streets, the various plazas, etc. can be used. (This would really be hard for media creators to create content if every one had to go through a process to get the authorization to use a city name, wouldn't it!)
However, even if the name of the city is not copyrighted, the way you use it can be. For instance, stuff like "I [heart] NY", New York City logos and such are most likely copyrighted and you should inspect each of these items with a lawyer before knowing what if it is copyrighted or not.
[...] generally speaking no city would have a right to a trademark in their own to mark their city as a good or service. That said, the city of New York likely has trademarks, for example, in a certain logo or design of the name to mark certain goods, such as brochures, advertising, etc. etc. [...] Source
Another important point about the use of New York City: what's in it. If you know there is a restaurant named "McDonald's" at the corner of street XX and street YY, to be able to put that restaurant name and logo in your game, you will need the authorization from the restaurant. This will be a huge task for a whole city.
About the usage of Google supplied data
The Terms of Services are quite clear (bold characters are from me to highlight the important points in this case):
2 . Restrictions on Use. Unless you have received prior written authorization from Google (or, as applicable, from the provider of particular Content), you must not: (a) copy, translate, modify, or make derivative works of the Content or any part thereof; (b) redistribute, sublicense, rent, publish, sell, assign, lease, market, transfer, or otherwise make the Products or Content available to third parties; (c) reverse engineer, decompile or otherwise attempt to extract the source code of the Service or any part thereof, unless this is expressly permitted or required by applicable law;
So you can't just use what's provided by Google. You can use it as a reference for building you city by your artists, but you can't just download the data, transform it, and put it in your game. Unless you get a specific authorization from them.
Without a specific authorization:
- City of New York: yes; but only the names of geographic locations (city, streets, public places, etc.).
- Commercial entities with their logos: no.
- Google data: no.