That's exactly how I started my city ( well before it cost 0 sp though). There were about 15 of us that were very close living in an old run down city that the mayor never payed any attention to at all. I had him on my friends list and only saw him pop in once every 3 weeks to register in the election each time. We had finally had enough, and agreed we would move to a new location and start anew. Since I had the most healthy bank account with about 5mil to my name at the time, I volenteered to make the sacrifice and pick up polotician and foot the bill myself just to get the thing off the ground.
With that core group of dedicated friends and all of our friends that came to join the community we have comea long way since then. We are now a thriving community with probably 85% of our members active daily or every couple of days, and not one completely inactive citizen.
In the beginning I was just doing it to get us off the ground with the intent of handing the reigns over to a more experienced polotician once we started to get rolling. However I found that the more I did in the realm of advancing the city and listening to what the community needed and networking with everyone I came to really enjoy being the Mayor. I probably now enjoy this aspect of the game more than any other and have no intention of ever giving it up.
I honestly believe that the best Mayors are usually ones that lived in a crappy city before and have seen all the things not to do first hand. I now always make a point to spend as much time actually in the city as possible, even if it comes at the cost of the productivity of my trade or advancing in another area. There is no better advertising you can do for your city than for the citizens to actually spend time there, and I'm not talking about just running to your house to drop off all the loot you just got from hunting and then heading back out for another load.
I have had many new residents move in after stopping in town to use a mission terminal or check out a vendor and showing them around a little. They would return to use the terminals and vendors many more times and we would form a relationship and do some missions together or help each other out with something the other needed. Eventually they would decide to just move there since they spent so much time there anyway and everyone was so friendly and polite. There is nothing that attracts new dedicated productive members of a community than seeing several familiar faces every time they visit your town.
I often just log on for a few hours to walk around town, hang out in the cantina and chat, or lounge in the guild hall/vendor mall and ask people browsing the vendors if they have any specific needs that one of our crafters can help them with. Actually playing as a polotician and not just a character that has the ability to place a shuttleport is very enjoyable if you like the social aspect of games like this and makes for a much nicer place to live. People that sit in the starport and offer houses and vehicles to anyone that will grace their city with their presence will have very large cities, but most of them have about 80% of the residents completely inactive or have moved somwhere else and just never changed their residence, that is not the way to do things.