Community Newspaper - which method

Hi,
I'm familiar with working with basic wordpress for various types of sites eg ones I've set up / admin http://www.settle.org.uk http://www.onlinechocolate.co.uk http://www.yorkshireweddingmagician.com

I'd like to set up a Local Community Newspaper site, where much of the content is provided by the readers and independant contributers, either on a regular basis or occasional / one off - some may be subject to admin approval, some may be able to publish immediately ( eg if a regular trusted source)

I'm wondering what platform to use - eg whether a theme like The Daily Theme, or whether to use BuddyPress, or to use a multisite network.

I'd like there to be a main site for a town, but then each area in the town to have it's own area as well, so that it is truely a local news site eg main page could be eg "www.LondonNews.org" then with sections such as
"www.LondonNews.org/local/westminster"
"www.LondonNews.org/local/clapham"
"www.LondonNews.org/local/soho"
"www.LondonNews.org/local/hammersmith"

each section could also have local advertising, events, groups, classifieds etc etc

what is the best way of acheiving this? Is there an out of the box theme/solution?

any pointers would be great, I'm not particularly strong at coding etc.

cheers

mark