No, the city was an alien prison camp set up for the purpose of experimenting on humans. At the end of the film the protagonist gained control of the prison but it was still out in the middle of nowhere in space.
Great movie with some of my favorite visuals in recent cinema. (well, I guess not too recent anymore).
If you've never seen it, I recommend watching the so-called "director's cut" which makes a few minor changes from the theatrical version that are definitely improvements. (for example, removing the opening narration that ruins the entire plot of the movie just because studio execs thought the movie was "confusing")