City, New York, welcoming ANC (5)
I believe the answer is:
nancy
'city' is the definition.
(I've seen this before)
'new york welcoming anc' is the wordplay.
'new york' becomes 'ny'.
'welcoming' indicates putting letters inside (in sense of 'inviting in').
'ny' going around 'anc' is 'NANCY'.
(Other definitions for nancy that I've seen before include "Fruit" , "City in Lorraine" , "Dickensian character who died" , "one of the Mitford sisters" , "City in Europe" .)