Translation:There are many people living in this city.
It's interesting to me that the singular verb "живёт" in this sentence seems not to agree with the plural noun "люди". I guess this is because it's actually agreeing with "много" in the sense of "a lot", which is technically singular?
Wrote that verbatim as well. I think it should be colloquially acceptable unless there's a grammatical reason why it's wrong.
Is "In this city, live many people." acceptable? It has the same word order and pretty much the same meaning.