I'd settle it as my second or possibly third city as well, depending on other possible locations and the other AIs nearby. If you're close to an AI or two, you have more value in grabbing outward territory (so settle this a bit later); also you would want an earlier city with hammer potential.
In general, that's a great city for commerce and for building workers/settlers. I don't consider it a great specialist city but it certainly can produce some specialists (at minimum, two scientists very early on).
Overlap, in general, is not a bad thing, and is often a good thing. Overlapping significant resources is a very good thing (as long as you're not losing some other resource as a result) - it means you can get better use of tiles by having two cities that can use them. Being able to switch out from hardcore food production once you're grown to commerce, and still getting use of that food tile, is better than having to choose between having useless growth (unhappy faces) in a city where you don't really want to slave, and not using a great tile...
In general, that's a great city for commerce and for building workers/settlers. I don't consider it a great specialist city but it certainly can produce some specialists (at minimum, two scientists very early on).
Overlap, in general, is not a bad thing, and is often a good thing. Overlapping significant resources is a very good thing (as long as you're not losing some other resource as a result) - it means you can get better use of tiles by having two cities that can use them. Being able to switch out from hardcore food production once you're grown to commerce, and still getting use of that food tile, is better than having to choose between having useless growth (unhappy faces) in a city where you don't really want to slave, and not using a great tile...
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