The best way to do this is to build a page of general business related information and "flavor" it for the city by mentioning the city in the page a couple of times.
For instance:
Say you are a carpet cleaner. Build a page about one of your services, suppose it was "hot water injection carpet cleaning".
You could write an article explaining what this service consists of, why steam cleaning is best, and so on.
If you were to put a case study of a carpet cleaning job from a local job on the page in this manner, it will be enough to bring in the keyword.
H2 tag:
Case Study, 2 story house in Sioux Falls.
Details:
This house was an older home in the tandywine section of Sioux Falls, being settled as part of an estate. Dry Humpers Cleaners were called in to see if the old carpeting could be saved blah blah blah...carpet came out great..blah blah blah...turn your Sioux Falls home into a showcase.
(keep this above directly under the heading tag in the same div)
Remember that ranking in the local SEO algo is not accomplished by keyword targeting in the usual way people do keyword targeting. It is done with onpage SEO, not backlinks.
Your site will rank for the content of your pages whatever that is based on how well you embrace the local algorithm.
What you are going for is keyword inclusion on the page that you will rank. Any well written page can rank for dozens of keywords in the local algorithm, because the ranking does not rely heavily on backlinks.
I am not saying backlinks are not useful here, just that when you do the local algorithm correctly, you need only a few quality backlinks to rank if any at all, unless you are in a large, SEO savvy business vertical.