City that was elegant in the past (7)
I believe the answer is:
chicago
'city' is the definition.
(Chicago is an example)
'elegant in the past' is the wordplay.
'elegant' becomes 'chic' (chic means fashionable or elegant).
'in the past' becomes 'ago' (three years ago means three years in the past).
'chic'+'ago'='CHICAGO'
'that was' is the link.
(Other definitions for chicago that I've seen before include "City on Lake Michigan" , "A windy place" , "3 city in the US" , "1970s' John Kander/Fred Ebb musical" , "Type of bridge" .)