These are the some ways to advertise for the local business;
Bus signs: You can ask to put the sing on public transportation bus
Taxi signs: Again you can advertise on taxi by contacting the cabs companies.
Local radio: It is also one of the effective ways to target on the local radio for small time slot.
Newspaper: This media really give you the choice to select your target communities also
Famous websites: The locally popular website is another option to advertise for example (craigslist/kijiji). You can probably buy advertising space on popular local websites .
Flyers are the old fashion way to advertisement, but require little effort from you also to post manually. Better to post them round your neighborhood. Post it on local community bulletin boards.
You can try some local online marketing strategies also.
Online Forums: Find some local forums online and then promote your site on these forums
Coupons: You can also choose to make a deal with the local restaurant or the dry cleaner to give away the list of their customers to you. In exchange you can offer their customers a free lunch or coupons that would enable them to shop at the most happening or at least a fairly good shopping mall of their city.
Google Adwords: It is really great for local campaigns.
Distribution network : What about getting a distribution network of local business owners who either for free (or for a price) will place promotional materials for your business. Like a stack of postcards by the cash register or a poster or something.
Direct Mail: Direct mailers might work.
Your Vehicle: Put your URL or local business name and address on your vehicle.
Media coverage: Try to get the local paper/tv network to run a story on your website.
Facebook: It would probably work well.
Email campaign: E-mailers that have an element to them that encourages people to forward them to their friends.
Meetups: Participate those group meeting and such might also help you.